FILE COPY Report No. 1508a-OM Appraisal of a Highway Maintenance Project Oman May 17, 1977 Regional Projects Department Europe, Middle East and North Africa Regional Office FOR OFFICIAL USE ONLY U Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (As of December 31, 1976) Currency Unit = Rial Omani (RO) RO 1 = 1,000 Baizas US$2.89519 1 Baiza - US$0.0029 100 Baizas = US$0.29 US$1 = RO 0.3454 WEIGHTS AND MEASURES Metric System British/US System 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 0.62 miles(mi) 2 1 sq. kilometer (km ) - 0.386 sq. niles (mi ) 1 metric ton (m ton) = 0.984 long ton (lg ton) GLOSSARY OF ABBREVIATIONS B:C - Benefit/Cost (ratio) c.i.f. - Cost, insurance and freight CPD - Critical Path Diagram RD - Roads Department ER - Economic Return MC - Ministry of Communications MD - Ministry of Defense OD - Origin and Destination (survey) PDO - Petroleum Development Oman PDRY - People's Democratic Republic of Yemen TC - Training Center TEU - Traffic Engineering Unit TOR - Terms of Reference TPU - Training Production Unit TU - Training Unit UAE - United Arab Emi-;ates VOC - Vehicle Operating Cost AL - Delta L (factor) SULTANATE OF OMAN FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Table of Contents Page No. SUMMARY AND CONCLUSIONS ..... ......................... i-i I. INTRODUCTION .* * * * * * * * * * . ................................ ......... 1 II. THE TRANSPORT SECTOR * * * * * * * * * * * * * * ................................... . 1 A. Geography, Economic Development and the Transport Network ................... ......... 1 B. The Transport System . ..................... ...... 3 C. Transport Policy, Planning and Organization ..... 5 D. Previous Projects in the Transport Sector ..... .. 6 III. THE HIGHWAYS ....... .................................. 6 A. The Network .............. o....... ......* ...................... 6 B. Traffic ......................................... ....0....... . 7 C. Administration .................................. . 8 D. Planning ............. . ......................... 8 E. Financing and Investment ......... . . .............. 8 F. Engineering ..................................... 9 G. Highway Maintenance ... .......................... 9 Hl. Training ...................................................... 10 IV. THE PROJECT .......................................... 10 A. Objectives ............ .. ......... ..... .... 10 B. Description ......................................... 0 ........... 11 C. Engineering ... ................................... 14 D. Cost Estimate ...... ........................... 14 E. Financing ...................................... * ............... 16 F. Implementation .............. .. .................. 16 G. Disbursements ....... . ............................ 17 H. Environmental Impact ............................ 18 V. ECONOMIC EVALUATION ...... ....................... 18 A. Benefits and Beneficiaries ...................... 18 B. Economic Evaluation ... .......................... 19 VI. RECOMMENDATIONS . . ..................... 20 This report was prepared by Messrs. A.I. Ramuglia (Economist), M.R. Payne (Engineer) and G.A. Morra (Training Officer). This document hu a retricted distribution and may be usd by recipients only in the performance of their offcil dutie. Its contents may not otherwise be disclosed without World Bank authorization. TABLES 1. Government Development Expenditures on Transportation Infrastructure 2. Lengths of National Roads 3. Motor Vehicle Fleet 4. Operating Fleet by Vehicle Type 5. Annual Taxes and Fees by Vehicle Type 6. Current Expenditures Directorate of Roads 7. Lengths of Gravel/Earth Roads (km) by Year & by AADT Classification (VPD) 8. Summary of Vehicle Operating Costs on Level Tangent Roads - Asphalt 9. Summary of Vehicle Operating Costs on Level Tangent Roads - Engineered Gravel 10. Summary of Vehicle Operating Costs on Level Tangent Roads - Maintained Track 11. Summary of Vehicle Operating Costs on Level Tangent Roads - Track 12. Operating Speeds on Various Road Surfaces 13. Direct Operating Costs by Road Surface Type 14. Delta "L" Factors, Unpaved Roads 15. User Cost Increase Factors for Unmaintained Paved Surfaces 16. Kilometerage of Highway by ADT Categories 17. Unpaved System ADT Categories and Surface Condition Existing and, By Year, With Improved Maintenance 18. Unpaved System ADT Categories and Surface Condition Existing and, By Year, Without Improved Maintenance 19. Total Equivalent Kilometerage 20. Total User Savings, Maintenance Program 21. Three and Five Year Cost Estimates for Routine Maintenance 22. Three and Five Year Cost Estimates for Periodic M4aintenance 23. Training Equipment and Materials Required for Training Program 24. Numbers, Estimated Costs and Years of Delivery for Plant and Equipment 25. Implementation Schedule 26. Proposed Table for Schedule I, Loan Agreement 27. Critical Path Diagram 28. The Economic Justification for the Routine Highway Maintenance Program 29. Workshop Equipment Schedule ANNEXES A-1 Definitions A-2 Draft Terms of Reference - Maintenance Management/Training Services - Roads Department B. Draft Terms of Reference - General Technical Assistance C. Estimated Disbursement Schedule D-1 Terms of Reference - Training D-2 Establishment of a Training Structure E. Methodology Used for Economic Evaluation of Routine Maintenance Program CHARTS 1. World Bank-17088 - Actual Working Structure, Roads Department 2. .World Bank-17089 - Theoretical Structure, Roads Department MAPS 1. Transportation System - IBRD 12771 2. Traffic Flows on Highway Network - IBRD 12772 3. Maintenance Stations - Oman APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN SUMMARY AND CONCLUSIONS i. In many ways Oman has the characteristics of an island as it is surrounded by seas of water and of sand. The sand is the trackless empty quarter of Arabia, the Rub al-Khali, the largest sand desert in the world. The water is the Gulf of Oman and the Arabian sea. The Rub al-Khali, unlike the ocean, has served as a barrier and historically Oman has looked outward to the sea, which not only provided access to foreign lands, but also linked the coastal towns of Oman proper. ii. Although Oman was the foremost regional power in the Gulf between 1750 and 1856 and Muscat the center of a maritime empire, the century between 1870 and 1970 was one of stagnation, and the Sultanate was, in a literal sense, a closed society. iii. Since 1970, with the accession of the present Sultan, Qaboos bin Said, development has been rapid. Financed by oil revenues the country has seen, in a six-year time span, the development of much of the basic transport infrastructure, including modern roads, ports and an airport. However, such a rapid development has been largely on the basis of ad hoc policy and planning decisions. Further, the development has essentially been dependent on foreign expertise, and to a large extent, on foreign labor. iv. Since construction of a modern transport infrastructure really only began at the start of this decade there is essentially no natural experience in the maintenance of such infrastructure. The proposed project would help the Government in establishing a highway maintenance program and to train national staff for maintenance of the expanding national road network. The project would also provide the Roads Department with technical assistance to administer the maintenance program and in carrying out its other duties. v. The total cost of the proposed project is estimated at US$47 mil- lion with a foreign exchange component of US$23 million, including price and quantity contingencies. vi. The Ministry of Communications, under which the Roads Department functions, would have the overall responsibility for project implementation. vii. Contracts for road maintenance equipment and shop equipment will be awarded after international competitive bidding in accordance with the Bank's "Guidelines for Procurement". Contracts for maintenance shops and training classrooms and equipment will be awarded after competitive bidding in accord- ance with local procedures under which foreign contractors are allowed to bid. Consulting services for technical assistance as well as the maintenance management/training program will be provided according to terms of reference and contracts, both satisfactory to the Bank. - ii - viii. The project was appraised in November 1976 with a follow-up mission in January 1977. The general benefits from the proposed investments will accrue to the economy of Oman as a whole due to the protection of the nation's investment in its highway network and the development of Omani nationals to staff and operate the highway maintenance program. Maintenance of the highway network will provide direct benefits to the trucking industry, which is com- petitive, and to a wide range of income groups utilizing highway passenger transport. ix. The project is economically sound and of high priority. On the basis of savings in highway user costs the maintenance component of the project shows an overall ER of over 100%. While benefits from the technical assistance and training components cannot really be quantified, they are critical elements not only in the development, implementation and control of the maintenance program, but in setting up a framework for sound development of the highway sector. x. It is proposed to finance 66% of the foreign costs of the project by a loan to the Government of Oman of US$15 million for a 15-year period including three years of grace. The loan would cover 32% of the total project cost. The proposed project provides a suitable basis for such a loan to Oman. APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN I. INTRODUCTION 1.01 The Sultanate of Oman has asked the Bank to help finance a project comprising road maintenance, training of maintenance personnel and technical assistance to the Roads Department (RD). The road maintenance program was developed under the technical assistance to the RD, foreign costs of which are financed under Loan 985-OM. The technical assistance Consultant (Louis Berger International, Inc., U.S.A.) has also developed the recommended training and technical assistance program. The total project cost is estimated at US$47 million, towards which a Bank Loan of US$15 million, representing 66% of the foreign and 32% of the total cost is proposed. 1.02 This report was prepared on the basis of information by the Omani authorities, the techncial assistance Consultant and on the findings of an appraisal mission composed of Messrs. A.I. Ramuglia (Economist), B.J. Sisson (Engineer), and G.A. Morra (Training Expert), who visited Oman in November 1976 and a follow-up mission of Messrs. J.R. Howard (Division Chief), M.R. Payne (Engineer), A.I. Ramuglia and G.A. Morra in January 1977. II. THE TRANSPORT SECTOR A. Geography, Economic Development and the Transport Network 2.01 The Sultanate of Oman, occupying most of the southeast corner of the Arabian Peninsula, has a coastline of almost 1,800 km which stretches from the Strait of Hormuz southeast along the Gulf of Oman and then west along the Arabian Sea to the border of the People's Democratic Republic of Yemen (PDRY). The extreme northern section of Oman, the Peninsula of Musandam, is separated from the main body of the Sultanate by about 80 km of territory which is part of the United Arab Emirates (UAE). Oman is bordered by the PDRY, Saudi Arabia and the UAE. The frontiers with Saudi Arabia and PDRY, which stretch approximately 600 and 300 km, respectively, have never been formally agreed to but the total area of the Sultanate is estimated at about 300,000 sq.km. or somewhat larger than the United Kingdom. 2.02 In many ways Oman has the characteristics of an island, being surrounded by seas of water and of sand. The sand is the trackless empty quarter of Arabia, the Rub al-Khali, the largest sand desert in the world. Being, therefore, geographically insular, Oman's contacts with the world at large have been primarily by sea, which not only provided access to foreign lands, but also linked the coastal towns of Oman proper. The Rub al-Khali, unlike the ocean, has served as a barrier and the insularity of the interior has been reinforced by the Hajar mountain chain which forms a formidable barrier between the coast and the desert from the Musandam Peninsula south to the city of Sur. 2.03 Climatically, Oman may be generally characterized as "hot and dry". The "dry" does not, however, necessarily mean low humidity. The summer climate is one of the hottest in the world, made more unpleasant by high humidity in lowland areas such as the Batinah Plain. With the notable exception of the southwestern portion of Dhofar, rainfall is scarce, ranging, in a general way from 75 to 150 mm annually. This average does not reflect the wide variations between regions or indicate the frequent variations from year to year, a cri- tical element in an area so deficient in moisture. Except for the south- western portion of Dhofar, the only region in Oman with some continually running streams, the country supports very little natural vegetation beyond a few scrub bushes and trees. 2.04 The Sultanate has a long tradition as a prosperous maritime and trading nation. Between 1750 and 1856, Oman was the foremost regional power in the Gulf and Muscat was the center of a wide maritime empire. In the second half of the eighteenth century the Sultan ruled not only present day Oman but over Zanzibar and much of the territory around it as well as coastal enclaves at Bandar Abbar and Gwadur on the north shore of the Gulf. Muscat, along with Calcutta, Malacca and Batavia, was one of the great ports of the Indian Ocean. By 1856, however, economic decline had set in, the result of internal political problems, a succession crisis in 1861 which resulted in Zanzibar being separated from Muscat, a restriction of the slave trade and the introduction of European steamships into the Gulf. 2.05 During the century between 1870 and 1970 most Omanis were engaged in some form of agriculture. Even with the rapid development of the last half decade, this is still true. In Dhofar, around Nizwa and along the Batinah Plain, tomatoes, onions, radishes, okra, eggplant, cucumbers, beans, cereals and forage are grown. Dates, the major cash crop, are grown extensively along the highlands. Limes, an export crop, are grown in the southwestern portion of the Dhofar coastal plain along with coconuts, papayas and bananas. 2.06 There are no accurate statistics on population for Oman. The 1975 Bank Atlas figure of 720,000, is undoubtedly high (the 1974 Atlas gave the population as 600,000). A 1972 Economic Survey uses a figure of 450,000 but comments ".... that it may be too high rather than too low". The Consultant to the RD in their August 1976 "Interim Report" estimate the population at 540,000 with an additional 15,000-16,000 Omanis working abroad. The Government of Oman, for planning purposes, assumes a population of 1,500,000. 2.07 The first commercial oil strike in Oman was made in 1964 and oil exports began in August 1967. However, Sultan Said bin Taimour believed change should come slowly, and, therefore, the majority of the revenues accumulated. The Sultan's autocratic rule, the general poverty and the limited pace of development led to a coup d'etat in July 1970 in which Sultan Said, who had ruled since 1932, was replaced by his son, the present Sultan, - 3 - H.M. Qaboos bin Said. Under the new Sultan there has been a rapid develop- ment of telecommunications, power, ports, roads, hospitals, schools and a liberalization of social and economic laws. 2.08 The traditional economy, i.e., the economy in the century prior to 1970, placed only limited demand on the transport system. The bulk of mar- keted products moved only short distances within the range of animal transport. A few products were carried over longer distances but the flow was small and much of this traffic was carried along the coast by dhow. The dhow did not require modern port facilities - indeed, the dhow can do without a port, unloading directly onto the beach at low tide. However, even by 1970 the transport requirements of the oil sector were considerable. Although they were largely self-contained within the operation of Petroleum Development Oman (PDO), the search for oil not only put the vast and previously uncharted area of inner Oman and Dhofar on the map but, as more and more vehicles were introduced to bring supplies to the oil camps, more and more tracks became rough roads, then graded roads and finally, a few asphalt roads. Further, the development of petroleum provided the impetus and the revenue for a general development of transport demand and for improvements in the transport system. B. The Transport System 2.09 Oman's basic transport system now includes an extensive and rapidly growing road network made up of about 1,000 km of asphalted and perhaps 6 times that amount of graded but unpaved roads, a modern deepwater and one modern medium depth (5 meters) cargo port, an old port at Muscat with limited capacity, a number of natural berths which have limited local functions, an oil port, one fully international airport and a number of modest civilian and military air strips (Map 1). (a) Highways 2.10 The highway sector is discussed in Chapter III. (b) Ports 2.11 Oman has a number of natural harbors including the historically important ports of Muscat and Mutrah. However, until the construction of Port Mina al Fahal at Mutrah between 1970 and 1975, the country had no port with deepwater berths and cargo, discharged at Muscat (general merchandise) or nearby Mina al Fahal (oil company cargo), was offloaded onto barges and then moved to small jetties. Heavy cargo was discharged "over the beach" at Mutrah, something no longer possible because of a road constructed along the beach. 2.12 Port Qaboos, protected by a 700 meter breakwater, has a navigable channel dredged to 11 meters. The port has 11 berths, 10 transit sheds, a cement silo and is to have a grain silo and fish canning facilities. The - 4 - port has a theoretical capacity of some 1.5 million tons of cargo per annum and in 1975 handled 1,040,000 metric tons of cargo (of which all except two metric tons were imports). 2.13 The old port of Muscat still services dhow traffic, which now may be on the order of 30 to 50 thousand tons annually. The PDO port at Mina al Fahal serves as the export terminus for Oman's oil and in 1975, handled almost 19 million metric tons of petroleum, as well as 221,000 metric tons of cargo for PDO. This was slightly more than the 217,000 metric tons handled at Raysut (Salalah) in Dhofar Province, a "new" port essentially completed in 1975 which is now being expanded with nine deepwater berths which will give it a capacity of about 1 million tons per annum. 2.14 Southeast of Muscat, where the Gulf of Oman joins the Arabian Sea, lies the port of Sur, once the main link to Zanzibar, when it was under the Sultanate, the Gulf and India. Now only an occasional dhow stops at Sur which has only natural berths and no facilities whatsoever; some building of dhows continues in the Sur area. Dhows are used primarily in the coastal trade and still provide a major transport link to Dhofar Province. 2.15 Although the Port of Mina Qaboos is moderately congested at the present time, reflecting the general import boom in the Middle East, this can be expected to lessen both as a result of the boom "topping out" and because of the vast investment being made in port infrastructure all through the Gulf. The present expansion of the port of Raysut in Dhofar will provide a great deal of excess capacity for that province in the immediate future. (c) Civil Aviation 2.16 Although civil air transport is still in an early stage of develop- ment in Oman, the climate and subsoil of the country provide numerous natural landing places for light aircraft. Primitive airstrips, most with no more than some stones marking the runway and a windstock, exist in all parts of the country including some in otherwise inaccessible points in the mountains. 2.17 Regular domestic service is limited to flights between Muscat and Salalah. The military provides irregular but fairly frequent service on a "space available" basis to Khasab, Sohar, Buraimi, Nizwa, Sur, Masirah and Salalah. PDO provides air service for its staff to the various oil installa- tions. Total domestic air traffic is modest, amounting to perhaps 25,000 passenger movements between Muscat and Salalah and a few thousand more on non-scheduled and military flights per year. Nevertheless, this represents a significant increase over levels of just a year or two ago. 2.18 Seeb International Airport, 32 km west of Muscat, opened in September 1972. With a runway 3,000 meters long the airport can handle B747s as well as other large airplanes. In 1975, the last year for which data is available, 263,800 passengers were handled at Seeb as well as 10,782 tons of cargo. The airport has adequate capacity for current traffic although some expansion in repair facilities and hangar space probably is desirable. -5- (d) Railway 2.19 There are no railways in Oman and no railway construction is planned or likely. C. Transport Policy, Planning and Organization (a) Policy and Planning 2.20 Transport policy and planning have been essentially on an ad hoc basis. This is not surprising given the short history of modern transport development, reflected in the fact that Oman's highway network in 1970 con- sisted of only 10 km of paved roadway and an unknown length of earth tracks, that there were no modern ports (construction of Port Qaboos was just getting underway in 1970) and no modern airports. When funds became available the Government put a high priority on the development of transport insfrastructure and used foreign consultants and contractors to design and construct highways, ports and airports. Many of the investments were obviously high priority items, essential to the development of Oman. Other investments in transport infrastructure may have been premature, especially as to scale. All tended to be expensive, not only because of the special conditions that existed (contractors had to import even some unskilled labor, there was no back-up infrastructure or local construction industry, etc.) but because of the sudden surge of construction activity in Oman and throughout the Middle East. 2.21 Equally critical is the question of maintenance. As construction of modern transport infrastructure really only began at the beginning of this decade, there is no past experience in the maintenance of such infrastructure. The RD, for all practical purposes, is less than four years old. Further, although the organization is well thought out, it remains, in large measure, a paper organization, with many of the positions, especially at the higher levels, not filled and others filled by expatriates (paras. 4.01 and 4.10). (b) Organization 2.22 The Ministry of Communications (MC) is the agency with overall responsibility for the transport sector. The RD has direct responsibility for planning, construction and maintenance of the road network (Chart 1). However, because so many senior posts are vacant the formal organization of the RD remains only a theoretical scheme. The actual working organization (Chart 2) is a good deal simpler since the RD now only has three actual operating divisions; Maintenance, Mechanical and Administrative. The Main- tenance Division functions quite independently (para 3.10). The Mechanical Division being situated in the capital area, is in fairly close RD contact, and under fairly close control, of RD headquarters. 2.23 The Administrative Division functions as the administrative staff of DR and is located in the new headquarters office in Muscat. The division is logically divided into four sections: Records, General, Personnel and Accounts. -6- D. Previous Projects in the Transport Sector 2.24 As a result of a Government request in late 1972 for Bank assistance in institution building and the findings of an appraisal mission to Oman in August/September 1973, a technical assistance project for economic planning, and for the agricultural and transport sectors was approved by the Board in April 1974 (Loan 985-OM). The Consultant to the RD retained under this project developed the Maintenance-Training-Technical Assistance Program which provides the basis for the proposed project. III. THE HIGHWAYS A. The Network 3.01 The largely self-sufficient agricultural economy of the 100 years between 1870 and 1970 placed only a limited demand on road transport as the bulk of marketed products moved only short distances, generally within the range of donkey transport. Further, because of Oman's dry climate, sparse natural vegetation and generally high strength of the subsoil, it is possible to drive across all but the most mountainous country. It has been estimated that 90% of the villages can, in fact, be reached with four-wheel drive vehicles. 3.02 Nevertheless, the unimproved tracks meant that costs, in time and equipment, were high and as the economy expanded under the impetus of petroleum development transport demand and the demand for improvements in the road network grew. Since 1971 budget allocations for road construction have formed a significant part of Oman's increasing expenditures for infrastruc- ture (Table 1). 3.03 In 1970 Oman had only 10 km of paved roads; by the end of 1976 there were over 1,000 km and the basic road network is largely in place or under construction. The national road network now under the jurisdiction of the RD includes 1,287 km of paved roads, completed or under construction, 2,564 km of maintained earth roads, and 714 km of tracks (Table 2). In addition, some 908 km of MC tracks and 952 km of Ministry of Defense (MD) gravel roads will be handed over to the RD in January 1978 (para 3.16). The length of the local network is unknown, but it essentially consists of earth tracks. 3.04 Administratively, the national network has been divided into class A and class B roads. Class A roads are defined as asphalt surfaced roads with permanent flood protection and wadi crossings. Class B roads are graded roads with maintained natural surfaces. Evidently, gravel roads as well as maintained tracks would be considered to fall under this category even though they do not strictly meet the definition. 3.05 All design work has been carried out by expatriates. Originally most of the work was on a design and construct basis. Consequently, part of the network, in terms of economic efficiency, may have been overdesigned. Certainly, costs have tended to be high, even considering the special problems that may have faced contractors in Oman. However, over the last four years consulting engineers have been retained to review the designs of contractors and to do some of the basic design themselves. B. Traffic 3.06 Traffic data are limited in Oman. However, in October 1975 the technical assistant consultant to the RD conducted major traffic surveys (Map 2). These investigations showed that the formerly ubiquitous four- wheel drive Land Rover was being replaced by light trucks, reflecting the improvement and expansion of the road network. Comparisons with fragmentary "historical" data showed a very high rate of traffic growth over the last two years in most areas, increases of well over 100% being recorded on some main roads and as much as 600% on a road upgraded from a winding, bumpy earth road to a modern highway. The surveys also noted a conspicuous peaking phenomenon in and around the capital area due to commuter traffic. 3.07 A section responsible for traffic engineering, called the Traffic Engineering Unit (TEU), has been established in the RD. The chief activity of the TEU will be the systematic collection of traffic data in the Sultanate, including classification counts, volume counts and OD surveys. A number of OD and traffic surveys are planned for the near future. The unit will con- duct these studies with the help of the technical assistance team (para 4.08). 3.08 The vehicle fleet in Oman has shown spectacular growth in the last five years, albeit from a modest base. In 1970 there were only about 1,000 motor vehicles of all kinds in Oman and most of these belonged to the Armed Forces or PDO. By the end of 1973 the vehicle fleet had increased to 14,447 and by the end of 1975 to over 31,000 (Tables 3 and 4). 3.09 With the exception of urban bus transportation there is no gov- ernmental regulation of tariffs. This lack of Government intervention has encouraged an economically rational demand for transport and effective com- petition. And, in fact, the road transport industry in Oman is characterized by great competition between small (largely individual) operators. At the present time there are no axle load limits established or enforced for Omani highways. However, as part of the previous Loan 985-OM, a study will be made to recommend such axle load limits (para 4.17). Traffic regulations are generally well obeyed and enforced in the capital area, the only area with a significant concentration of traffic. - 8 - C. Administration 3.10 Administration of the national highway network is under the RD which is part of the MC. In some respects the RD remains a paper organization, well thought out but short on professional staff. This has limited its effective- ness but with the help of some expatriates and the technical assistance team financed under Loan 985-OM the RD provides the basic framework for adminis- trative control of the highway program, including the necessary expanding maintenance program. The main administrative and technical departments of the RD are located in Muscat, the nation's capital. Actual maintenance of the network is assigned to 18 work centers (para 2.22 and Chart 1). Of the approved staff for the RD over one-third of the posts are vacant and many of the individuals who presently fill positions lack the required qualifications to function effectively. Further, the proportion of unfilled posts is highest at the skilled levels. D. Planning 3.11 Transport planning has been essentially on an ad hoc basis (para 2.20). The technical assistance consultants to the RD have, however, devel- oped a five-year national road maintenance program which has served as a basic document for the appraisal of the proposed project. This program will be annually "rolled over" under the maintenance management assistance to the RD provided for in the proposed project. Eventually the RD, to effectively guide highway investment, will have to develop network planning capabilities (para 4.11). However, since the basic highway infrastructure is now largely in place or under construction a systematic maintenance effort to protect that invest- ment is more critical, in the short run, than comprehensive planning of future investments. Given the limitation of manpower and technical skills under which the RD has to function, the implementation and administration of a maintenance program should have first priority; hence the thrust of the proposed project. That an imbalance may exist in previous transport sector capital investments has been recognized by the Government who have agreed that, as part of the proposed project, general technical assistance to the RD should be provided by consultants to identify and subsequently update a highway investment master plan. E. Financing and Investment 3.12 Highway expenditures in Oman are financed from the general budget unless outside financing is involved. Direct and indirect taxes on road users are in the form of taxation on vehicles, spare parts, tires and petrol- eum products. However, these taxes are modest, consisting of a two-percent vehicle and spare parts tax on the c.i.f. value of imports, a circulation tax based on the weight of the vehicle and a modest fuel tax which, however, - 9 - is on the wholesaler only (though it undoubtedly is passed on to the user even though retail prices are regulated by the Government). Overall, direct taxes on motor vehicles range from 27 Omani Rials (approximately US$90) for a saloon car to 127 Omani Rials (approximately US$380) for a heavy truck (Table 5). Further, both the direct taxes and the indirect (wholesale) fuel tax are not earmarked for highway expenditure but go into the general fund. As separate accounts of these taxes are not kept there are no data as to the total amounts collected. 3.13 Since 1970 the Government has embarked on a program of constructing modern roads. Investment in highway infrastructure now is the most signifi- cant Government development expenditure in the transport field having reached 32.2 million Omani Rials (almost US$95 million) in 1975 (Table 1). At the same time current expenditures for the RD have grown from just over 291,000 Omani Rials in 1973 to almost 1.5 Omani Rials (US$4.3 million) in 1976 (Table 6). The basic national road network is now largely in place or under con- struction (para 3.03). F. Engineering 3.14 Prior to 1970 there were no highway engineers in Oman since there were essentially no highways. Since that time steps have been taken to pro- vide technical education for Omanis overseas but this is, of course, a long- term proposition. To date, there are no Omani highway engineers with the RD although a number of Omani students are now studying engineering overseas and are a potential source of such trained manpower in the future. However, for the present the design, construction and construction supervision of the Omani highway program has been carried out by expatriates (para 3.05). The develop- ment of the five-year maintenance program has also been carried out by expa- triates, the RD technical assistance consultant (para 3.11). G. Highway Maintenance 3.15 Although highway maintenance is the primary function of the RD it cannot now, on its own, achieve adequate maintenance of the expanding Omani highway network due to understaffing and a dearth of key admininistrative and technical personnel at all levels. Since paved highways in Oman essen- tially date from 1970, most of the paved kilometrage is under five years old, and has received one or two years maintenance by the construction contractors as part of the construction contract. Deterioration due to inadequate maintenance is, therefore, not yet pronounced. However, as the warranty period expires for more and more links, and traffic grows, deterioration of the network will accelerate unless maintenance effort is increased. - 10 - 3.16 The same situation applies to the approximately 900 km of defense roads to be turned over to the MC by the MD in the near future. These unpaved (primarily) but engineered roads have been well maintained - in many cases over-maintained - by the MD with the use of considerable amounts of expatriate manpower. 3.17 The level of maintenance effort on unpaved roads now under the RD can only be rated from "fair" to "poor". Continual scarifying and grading of the traveled way to eliminate washboarded surfaces have resulted in canal- ization since none of the unpaved roads have an embankment or parallel drain- age ditches. Consequently, a considerable number of these roads require the use of four-wheel drive vehicles (para 4.04). H. Training 3.18 Oman has a Vocational Training Center administered by the Ministry of Social Affairs and Labor which has been in operation for some years for training in the engineering trades. Although the teaching methodology follows the typical long term technical/vocational school system rather than the shorter and more practical training approach some of the present courses are generally relevant to the maintenance program, such as gasoline engine main- tenance, diesel engine maintenance, auto electrics and welding. However, space and other considerations have limited the amount of training which could be provided. The proposed project will provide for a broad spectrum of training for RD personnel, from operators to administrators based on an evaluation of needs directly related to the highway maintenance program (Annex A-2). IV. THE PROJECT A. Objectives 4.01 In accord with the Government's intentions to protect its heavy concentration of highway investments in recent years and sustain an efficient national transport network to serve the present and forecast transport demand, the project would assist the RD to establish effective and efficient routine highway maintenance procedures. The Government recognizes the significant shortage at all staff levels of suitable trained Omani nationals to partici- pate in the highway maintenance effort. An important project objective would be to help overcome this shortage by both a specific training program and on-job training. - 11 - B. Description 4.02 The project would consist of the first three-year time slice of a five-year highway maintenance program, related training and technical assis- tance and would include: (i) the purchase of highway maintenance equipment and spares; (ii) the construction of highway workshops and classroom training facilities; (iii) the purchase of training equipment and materials including audio-visual aids; (iv) equipment and spares for workshops; (v) fuel, oils and lubricants for the highway maintenance program; (vi) soils laboratory, survey and communications equipment and highway supplies; (vii) technical assistance to the RD to establish and manage the routine highway maintenance program over the three-year period 1978-80; (viii) a three-year, all-level staff training program for Omani highway maintenance personnel; and (ix) continued general technical assistance to the RD following the completion of the present program under Loan 985-OM. The Highway Maintenance Program 4.03 Under Loan 985-OM, the technical assistance consultants to the RD prepared, and the Government has approved in principle, a five-year routine and periodic maintenance program for the national roads in Oman. The Program includes all the 6,425 km of roads in the country for which the RD will have maintenance responsibility by January 1978 (para. 3.03). The proposed project is aimed at the routine highway maintenance part of the program where the need is most urgent and specifically relates to the first three-year slice of the five-year program. 4.04 Under the routine maintenance program specialized force account units in each of seven maintenance regions (Map 3) would regularly replenish gravel and shape earth road surfaces, carry out minor patching of asphalt surfaces and maintain shoulders, drainage, side slopes, signs and markings using existing equipment and new equipment to be purchased under the project. - 12 - 4.05 The Omani paved road network is young (weighted average age just over 2 years) and predominantly of high pavement design standard; consequently, periodic maintenance requirements during the five-year maintenance program are expected to be few and even those found to be necessary would occur near the end of the program and be directly financed by the Government. Details of the program are in Annex A. In the absence of RD's organizational strength and technical capability to handle such specialized work, the five-year periodic maintenance program, in the form of necessary rehabilitation, resealing, pavement reinforcement by asphalt overlay and provision of gravel base course would be best procured by local competitive tenders. Highway Maintenance Equipment and Spares 4.06 The requirements for new highway maintenance equipment and spares have been evaluated from: (a) the current stock and condition of RD equipment; (b) the current stock and condition of MD equipment that will be handed over to RD in January 1978 (Annex A); (c) the size, condition and construction standards of the highway network for which the RD has maintenance responsibility; (d) the physical outputs of equipment required to maintain the network in conditions that would optimize total high- way maintenance and vehicle operating costs; and (e) the spare parts consumption rates for the highway main- tenance equipment. An estimated list of equipment and machinery to be procured is given in Table 24; this is provisional as the items to be finally procured will be subject to a later review of requirements by the maintenance management consultants, to be financed under the proposed project, as detailed highway maintenance gets underway. Workshop Construction, Equipment and Spares 4.07 The consultants financed under Loan 985-OM have recommended the territorial division of Oman for highway maintenance purposes into seven regions. For northern Oman, one headquarters region at Azaiba controlled from the capital, Muscat, and four regions centered on Sohar, Ibir, Nizwa and Ibra; in southern Oman, one region controlled from Salalah, the principal town of Dhofar Province, and one region centered on Haima. The zonal partitions of the maintenance regions are logical and practical. In each region a highway maintenance workshop would be constructed to provide necessary mechanical support to highway maintenance equipment by operational servicing and repairs. Each workshop would be outfitted with appropriate servicing/repair apparatus, tools and consumable spares. Major repairs, such as engine overhauls, would only be carried out at Azaiba and Salalah. - 13 - 4.08 Details of workshop construction, incuding contract bidding docu- ments, and the list of workshop equipment in Table 29 were discussed and general agreement reached at negotiations. Fuels, Oils and Lubricants 4.09 The fuels, oils and lubricants which would be consumed during the maintenance program have been separated in the cost estimate (para. 4.18) as local costs because Oman is an oil exporting country. Technical Assistance for Highway Maintenance 4.10 Technical assistance would be provided to the RD for about 200 man- months of maintenance management consultants services to establish and manage the routine maintenance program according to Terms of Reference agreed with the Government negotiating team. Terms of Reference are attached at Annex A-2. The maintenance management consultants would also be responsible for the training program (para. 4.14), and for the establishment and performance of cost accounting procedures to monitor and control the costs of different highway maintenance operations. General Technical Assistance 4.11 As a continuation of the general technical assistance provided to the RD with the proceeds of the previous Loan 985-OM, approximately 100 man-months of consultants' services have been included in the project for administrative, planning and operational support to the RD including the continuation of highway and traffic data collection. Since the four-year old RD organization is understaffed at the professional level, the general technical assistance services would provide support for the overall control of the highway program. Terms of Reference in Annex B were discussed and agreed with the Government's negotiating team. Training 4.12 To strengthen the RD's capability to administer, control and under- take highway maintenance work, the project includes a comprehensive training program for all staff levels to be carried out partly in training facilities to be constructed as part of the project and partly in field production units for on-the-job training. Initially the program would concentrate on upgrading those semi-skilled nationals already working for the RD. Eventually the pro- gram would enable unskilled Omanis to be trained for work in the maintenance program. During negotiations assurances were given that the Government will support the training program by a policy statement outlining a training policy within the DR and the establishment of a training unit within the DR. 4.13 A training center would be constructed at the headquarters region in Azaiba near Muscat, where existing RD staff and recruits would receive preliminary courses before being assigned to a training production unit (TPU) for further, on-the-job, training. Details of the training program and - 14 - facilities, including TOR for the training consultant (Annex D-1) were agreed with the Government's negotiating team as was the list of training equipment (Table 23). 4.14 The training program would be an integral part of the highway maintenance management contract so that concordant relationships are ensured between operational staff outputs from the training center and the timing of equipment acquisition. 4.15 Concurrently with the program for semi-skilled trainees, senior staff would receive pertinent training abroad in maintenance program manage- ment. About 10 staff would be trained, each for an average of about 4 months. 4.16 Assurances were obtained during negotiations that the RD would: (a) recruit sufficient numbers of Omanis to be trained for maintenance operations; (b) make available sufficient numbers of experienced Omani personnel to be trained as instructors; and (c) submit details of the senior staff training program abroad for the Bank's approval. C. Engineering 4.17 The five-year maintenance program was developed by the technical assistance consultants to the RD under the previous Loan 985-OM, which in- cludes an axle loading study. The study should lead to the development of suitable axle loading limits for Oman highways. This information is important as the frequency and intensity of axle loadings on the highway system are directly proportional to the highway maintenance efforts required to keep the network in satisfactory condition. During negotiations assurances were obtained from the Government that it will take, or cause to be taken, such steps as shall be reasonably required to ensure that the dimensions and axle loads of vehicles using public highways within its territories are con- sistent with the structural and geometric design standards of such highways and that the legal limits imposed on such dimensions and axle loads in accordance with such standards are duly observed. Specific consequences of the imposition of an axle loading limit were discussed with the Government's negotiating team and will be further discussed when the results of the axle load study of Loan 985-OM become available. D. Cost Estimate 4.18 The estimated project costs based on December 1976 price levels are: - 15 - Three-Year Estimate - % Foreign Exchange RO million US$ million Proposed Bank to be Item Local Foreign Total Local Forefgn Total Participation Financed I. Highway Maintenance (a) Maintenance equipment and spares2/ - 1.7 1.7 - 5.0 5.0 5.0 100 (b) Workshop construction 0.2 1.5 1.7 0.6 4.4 5.0 4.0 91 (c) Workshop eq^upment , and spares>- 0.3 0.3 0.1 0.9 1.0 - 0 (d) Fuels, oils and lubricants 1.03/ - 1.02/ 3.03/ - 3.03/ - 0 (e) HQ & soil lab.bldg. constr.&eqpmt;survey & communications eqpmt; bldg.mtc.,utilities,hwy, office & gen.supplies 0.33- 0.9 1.2 0.723/ 2.7 3.4 - 0 (f) Maintenance management expatriate personnel -& local staff salaries 3.523/ 0.6 4.1 10.03/ 1.8 11.8 1.8 100 & allowances. 5.0 5.0 10.0 14.4 14.8 29.2 10.8 73 II. Training (a) Classrooms construction and equipment - 0.1 0.1 0.1 0.3 0.4 0.3 100 (b) Program in Oman 0.1 0.5 0.6 0.4 1.3 1.7 1.3 100 (c) Overseas fellowships - 0.1 0.1 - _ 0.2 0.2 100 0.1 0.7 0.8 0.5 1.8 2.3 1.8 100 III. Technical Assistance4/ 0.1 0.3 0.4 0.3 9 1.2 0.9 100 IV. Total I, II and III 5.2 6.0 11.2 15.2 17.5 32.7 13.5 77 V. Physical Contingencies (10%o) 0.5 0.6 1.1 1.5 1.8 3.3 0.5 VI. Price EscalationV1 2.6 1.2 3.8 7.5 3.6 11.1 1.0 VII. Estimated Project Cost 8.3 7.8 16.1 24.2 22.9 47.1 15.0 66 (Round off US$ totals) 8.3 7.8 16.1 24.0 23.0 47.0 1/ Mission estimate based on the first thtee years of a five-year highway routine maintenance program for 1978-82. (table 21) 2/ Financial expenditure; economic life is greater than three years. 3/ Recurrent costs in whole or part. No Bank financing. 4/ Based on an estimated 100 man-months of expatriate assistance to DR. Local costs includeper diem, housing and local transport allowances. 5/ 7.5% per year (1977-79) and 7% per year (1980-85) for foreign costs (see CPS memorandum dated January 31, 1977); 15% per year for local costs (mission estimate reflecting present and projected conditions). - 16 - The total cost of the five-year routine maintenance program, of which the proposed project comprises the first three-year time slice, has been esti- mated at RO 15.4 million (US$44.8 million) in December 1976 prices of which RO 6.4 million (US$18.6 million) is foreign exchange. Physical contingencies and cost escalation raise these estimated costs to US$80.4 and 29.1 million respectively, giving a foreign exchange component of 36%. Man-month rates for consultants in the maintenance management/training and general technical assistance components average US$7,000 including all overheads, air transporta- tion and escalation. Cost details are shown in Table 21. During negotiations the general cost estimates of the project and the overall five-year maintenance program were discussed and confirmed by the Government's representatives (Tables 21 and 22). E. Financing 4.19 The proposed loan of US$15 million, which would finance specific items of the project as shown in the cost estimate table, representing 66% of the foreign cost of the project, would be made to the Government of the Sultanate of Oman. The beneficiary of the loan is the MC, and through the MC, the RD. The Government would finance the remaining foreign costs (US$7.9 million) and all local costs (US$24.2 million) of which about US$0.1 million represents taxes. The Government would fully finance the last two years of the five-year routine maintenance program (US$33.3 million) and the total costs of the five-year periodic maintenance program (US$28.9 million). During loan negotiations assurances on these points, including the timely availability of the Government financing, were obtained from the Government's negotiating team. F. Implementation Responsibility for Implementation and Supervision 4.20 The RD would have overall responsibility for the execution of the highway maintenance and training programs with the assistance of consultants. The RD would also have direct responsibility for the procurement of highway maintenance equipment and spares, construction and supervision of maintenance workshops and classrooms, procurement of equipment for workshops and class- rooms and logistic support with workshop spares, fuels, oils and lubricants, soils laboratory, survey and communications equipment and highway supplies. The RD would be responsible for the efficient use of consultants providing technical assistance to them under this project. Procurement 4.21 The highway maintenance equipment and spares would be procured after international competitive bidding in accordance with the Bank's "Guidelines for Procurement". Bids would be evaluated on the basis of compliance with the specifications, price, delivery time and service facilities. - 17 - 4.22 Contracts for the construction of maintenance work shop buildings and classrooms would be awarded after competitive bidding in accordance with local procedures. This is appropriate since it is unlikely that any foreign contractor not already operating in Oman would be interested in the relatively minor, scattered individual contracts and because the presence of sufficient foreign and local contractors assures adequate competition. However, foreign contractors who wish to bid would not be excluded. Invitations for bids would be published in local and Gulf newspapers and contract documentation will be reviewed by the Bank before their issue to contractors. 4.23 The costs of particular items of training equipment (total cost US$20,000) are too small to justify the expense of international competitive bidding and procurement for items under US$3,000 would be by the regular local purchase procedures of the Borrower which are satisfactory to ensure competition. Items above US$3,000 will be procured by competitive bidding in accordance with local procedures (para. 4.22). 4.24 The maintenance management/training and general technical assistance would be carried out by qualified and experienced consultants according to Terms of Reference and conditions all satisfactory to the Bank (Annexes A and B). Project Implementation Schedule 4.25 The routine maintenance program financed under this project would cover a period of three years beginning January 1978. Bids for some highway maintenance and workshop equipment are expected to be invited in the second half of 1977 as are bids for the maintenance workshops and classrooms. The training program is expected to start early 1978 and the general technical asssistance is expected to start at the beginning of 1978 after the comple- tion of the present program financed under Loan 985-OM. The implementation schedule, which was discussed and confirmed with the Government during nego- tiations, is shown in Table 25. G. Disbursements 4.26 The proceeds of the proposed Bank loan would be disbursed on the following basis: (i) the actual foreign exchange costs of imported equipment and spares; (ii) 80% of the total costs of workshop construction; (iii) the actual foreign exchange costs of the highway maintenance management consultant's services; (iv) the actual foreign exchange costs of the construction and fittings of classrooms for training; - 18 - (v) the actual foreign exchange costs of operation by consultants of the training program in Oman, including equipment; (vi) 80% of the total costs of audio/visual training equipment; (vii) tile actual foreign exchange costs of overseas fellowships; and (viii) the actual foreign exchange costs of the general technical assistance consultants services to the RD. 4.27 Any funds remaining in the loan account after project completion would, with the agreement of the Bank, be reallocated for the procurement ot more highway maintenance equipment. 4.28 The estimated cumulative quarterly disbursement schedule is shown in Annex C assumes that the loan would become effective by January 1978. During negotiations the Government and the Bank discussed and confirmed the disbursement schedule. H.. Environmental Impact 4.29 None of the project elements have any significant physical affect on the environment. V. ECONOMIC EVALUATION A. Benefits and Beneficiaries 5.01 The proposed road maintenance program, would protect the national investment in transport infrastructure and, in conjunction with the project training component, improve Omani highway maintenance capabilities to match the increasing demands of growing traffic on an expanding highway network. Economic benefits from improved maintenance would include savings in transport costs since, if the present maintenance effort was unaltered, traffic service- ability of many highways would deteriorate. 5.02 Protection of past capital investments in transport infrastructure by relatively marginal annual recurrent expenditures is axiomatic. For the long-term development of Oman and the eventual full control and execution of the road maintenance program by Omani nationals, the project elements of training and technical assistance represent a rational use of resources. 5.03 Under present conditions, economic benefits would accrue directly: (a) to the State, which would preserve its investment in transport infrastructure and ultimately lower its highway maintenance costs as the RD staff becomes fully indigenized; - 19 - (b) to the trucking industry through reduced vehicle operating costs; and (c) to the range of income groups who use highway passenger transport. The extent to which benefits to truckers are passed down to consumers would depend on competition within the trucking industry; the industry is now freely competitive (para. 3.09). B. Economic Evaluation (a) Road Maintenance 5.04 The benefits from routine road maintenance arise from vehicle operating cost (VOC) savings as well as extending the time between resurfacing (periodic maintenance). The economic justification for some level of routine maintenance is apparent. Costs of preventing road failure through maintenance are less than intermittent reconstruction of the road. Hence, if the engineer- ing standards of original construction are economically justified, it is economically justified to maintain the road. However, the optimal maintenance level has to be decided: this depends on the relation between the marginal costs of increasing the maintenance effort beyond that which would just prevent the road from complete impassability and the resulting decrease in VOC and periodic maintenance costs. 5.05 In theory, the optimal maintenance level will vary between different road sections, depending on various incremental maintenance costs and corres- ponding road user benefits. In practice, efforts (in cost inputs) which would maintain the road at or near the minimum level of traffic serviceability for which it was constructed are economically justified only if the benefits (the value of traffic volumes multiplied by differential VOC) produce a Benefit/Cost (B:C) ratio of unity or greater. 5.06 In Oman for those asphalted roads which have been recently con- structed to standards judged to be higher than those needed to satisfactorily accommodate the low traffic loading frequencies that now occur (and are likely say, during the next five years), the concentration of effort should be on those protective routine maintenance tasks which would be needed if there was little traffic on the road, for example, minor repairs to pavement edges, restitution of shoulder erosion, drainage clearance etc. Pavement maintenance would not be entirely neglected but be done when observed running surface conditions and systematic classified traffic loading counts demonstrated the need for it. Important functions for project supervisory staff would be to prevent over- or under-investment by: (a) regulating the division of routine maintenance resources between pavement and ancillary works; and (b) selecting appropriate timings of periodic maintenance resurfacings. - 20 - 5.07 On the basis of savings in highway user costs for different road types (paved, gravel and unsurfaced) carrying < 50 to > 800 AADT, ER of between 80% and well over 100% were derived. B:C ratios, which are more appropriate for the analysis of road maintenance investments, of over 6 to 1 was obtained using an assumed opportunity cost of capital of 15% and are of just under 6 to 1 when a 20% opportunity cost of capital was used (Annex E and Table 28). (b) Training 5.08 Standard methods of economic justification cannot be applied real- istically to the training component of the proposed project. Training is a crucial project element and the one which should make the most significant contribution to the attainment of the objective of a competent maintenance organization staffed by Omanis. (c) Technical Assistance 5.09 The costs of technical assistance directly associated with the administration and control of the maintenance program have been included in the economic evaluation, which justifies them. 5.10 The technical assistance to the RD to be provided by consultants is more general in nature than specific so that the costs are not directly assignable to precise project elements. However, the technical assistance is an indispensable condition for the effective functioning of the RD, which, in turn, is fundamental to the successful operation of a national road main- tenance program in Oman. (d) Overall Economic Justification 5.11 The only quantifiable element of the proposed project is the road maintenance program, the cost of which represents 90% of the total estimated project cost. A network B:C of over 6:1 at an opportunity cost of capital of 15% and over 5.8:1 at an opportunity cost of capital of 20% for the main- tenance project component is representative (Table 28). VI. RECOMMENDATIONS 6.01 During loan negotiations, agreement was reached with the Government's negotiating team on the following principal issues: (a) Terms of Reference for the maintenance management/training program (paras. 4.10 and 4.14); (b) Terms of Reference for the general technical assistance to the RD (para. 4.11); and - 21 - (c) the general scope of the five-year routine maintenance program and that the Government would make available to the RD sufficient funds to execute the program, including wages, incentives and benefits, which would insure the recruitment and retention of semi-skilled and skilled Omani personnel (para. 4.18). 6.02 During loan negotiations agreements were reached with the Govern- ment's representatives that the Government will: (a) support the training program by a policy statement outlining a training policy within the RD and the establishment of a training unit within the RD (para. 4.12); (b) recruit sufficient numbers of Omanis to be trained for main- tenance operations (para. 4.16); (c) make available sufficient numbers of experienced Omani per- sonnel to be trained as instructors (para. 4.16); (d) submit details of the senior staff overseas training program for the Bank's approval (para. 4.16); (e) take, or cause to be taken, such steps as shall be reasonably required to ensure that the dimension and axle loads of vehicles using public highways within its territories are consistent with the structural and geometric design standards of such highways and that the legal limits imposed on such dimensions and axle loads in accordance with such standards are duly observed (para. 4.17); and (f) make available in a timely manner sufficient funds to the RD to carry out the agreed overall (routine and periodic) five year maintenance program (para. 4.19). 6.03 The project is suitable for a Bank Loan of US$15 million equivalent to the Sultanate of Oman for a 15-year term, including a three-year grace period. May 1977 TABLE 1 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Government Development Expenditures on Transportation Infrastructure (Million Omani Rials 11) Item 1971 1972 1973 1974 1975 Harbours and Ports 7.0 7.6 5.4 3.4 3.0 Airports and Aviation 1.5 2.8 1.7 2.5 0.2 Roads 4.8 4.3 5.1 19.9 32.2 l/ 1 Omani Rial US$2.90 Source: (1971-1975) "Sultanate of Oman, Statistical Yearbook", Fourth Issue MaY 1977 TABLE 2 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Lengths of National Roads 1/ Road Lengths in Km Completed by End of: Type of Road 1970 1971 1972 1973 1974 1975 1976 Asphalt surfaced 10 27 198 300 427 708 1007 Graded 1817 2168 3060 3620 4105 5495 NA l/ Excludes defense roads Source: (1970-1975) "Sultanate of Oman, Statistical Yearbook", Fourth Issue and (1976) Louis Berger International, Inc., Draft Report "Five-Year Physical Maintenance Program 1978-82". May 1977 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Motor Vehicle Fleet Number of Vehicles on Road at End of Year Registration Class - 1970 1971 1972 1973 1974 1975 Private 846 1,460 2,756 5,320 8,992 Commercial 2,898 5,380 7,247 9,925 15,108 Government 224 760 1,376 2,465 3,489 Taxis 210 240 443 495 732 Self-drive hire 167 330 53/ 10 12 Public Service 999 990 979 941 928 Diplomatic 8 20 54 69 97 Motorcycles 170 494 747 1,427 2,109 Total 840 4/ 5,540 9,674 13,607 20,652 31,467 1/ Registration class does not include breakdown by vehicle type. See Table 5 2/ Estimate by mission based on registration data for year. 3/ Most of the self-drive hire vehicles re-registered as taxis. 4/ No registration in 1970. No breakdown by registration class available. Source: "Sultanate of Oman, Statistical Yearbook", Third and Fourth Issues and Louis Berger International, Inc., "Interim Report", August 1976 May 1977 TABLE 4 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Operating Fleet by Vehicle Type Category 1974 1975 Passenger Vehicles 9,440 14,796 Pickups 7,735 11,963 Trucks 2,705 3,778 Industrial 491 630 Unaccounted for 281 300 Total 20,652 31,467 1/ "Other" Source: (1974) Special Tabulation, Central Policy Department and (1975) Louis Berger International, Inc., "Interim Report", August 1975 May 1977 TABLE 5 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Annual Taxes and Fees by Vehicle Type (Omani Rials 1/) Vehicle Type Item Saloon Light Truck Heavy Truck Road Tax 25.000 40.000 120.000 Registration (Plate) 1.000 1.000 1.000 Registration (Card) 1.000 1.000 1.000 Vehicle Inspection - 5.000 5.000 Driver's License2/ 1.667 1.667 1.667 Totals 28.667 48.667 128.667 1/ 1 Omani Rial= US$2.90 2/ Not strictly a vehicle tax Source: "Preliminary Draft Highway User Costs", Louis Berger International, Inc., Muttrah, Oman, January 1976 May 1977 TABLE 6 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Current Expenditures, Directorate of Roads (Omani Rials 1/) Item and Sub-Item 1. Salaries and Allowances 1973 1974 1975 1976 a. Salaries 73,708 168,297 306,538 357,000 b. Allowances 10,217 17,476 61,412 275,163 Subtotal 83,925 185,773 367,950 632,164 2. Other Charges General a. Duty Travel 144 4,045 812 1,397 b. Expatriate Travel - 776 403 1,936 c. Office and General 22,575 15,274 21,873 18,895 d. Electricity, Water and Rent 420 476 3,173 23,787 e. Maintenance, Fuel, etc. for Vehicks 50,261 99,044 206,568 273,852 f. Training Expenses - 66 2,129 1,080 g. Road Maintenance 29,816 48,467 107,849 166,143 h. Post and Telegraph - 1,002 377 1,195 i. Audit Cost - 3,500 - J. Buildings 3/ - 22,415 18,250 - Subtotal 103,218 191,564 364,935 493,285 Total Recurrent Expenditures 187,143 377,337 732,885 1,125,448 3. Special Expenditures a. Office Furniture 896 2,640 6,201 15,034 b. Vehicles 103,208 58,354 77,986 54,174 c. Equipment - 51,644 876,749 275,787 Subtotal 104,104 112,638 960,937 344,995 Grand Total 291,247 489,975 1,693,822 1,470,443 1/ 1 Omani Rial US$2.90 2/ Including wages for daily paid labor 3/ Including workshop extention 4/ Includes household furniture for DR homes Source: Louis Berger International. Inc., "Interim Report", August 1976 and information supplied by DR. May 19yf( TABLE 7 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAJN LEVTHS OF' C ELJAARTH MAD$ BY YEAR & BY AADT CLASSIFICATION (VPD) 1:500~~~~~~~~~4 Cii-X. SO. l 578 i7 O 1 Soe: Couts Rep, F 177 MaYr 1 977 TABLE 8 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Summary of Vehicle Operating Costs on Level Tangent Roads Asphalt Baizas per Kilometer - Speed _5/ Kilometers/hour Datsun- Land Rover 4/ Bedford Truck - 10 43.3 47.7 147.0 20 39.2 42.5 133.2 30 37.9 40.9 127.8 40 36.8 39.8 123.8 50 36.4 39.9 122.2 60 36.4 40.0 120.7 70 36.4 40.0 120.6 80 36.5 40.8 121.7 90 36.9 41.3 124.2 100 37.8 42.8 127.9 110 39.4 45.1 132.2 1/ Includes motor fuel, motor oil, tires & tubes, maintenance, depreciation, interest, insurance, taxes & fees, and (for Bedford truck only) driver's salary. 2/ 1 Omani Rial 1000 Baizas US$2.90. 3/ L20A, 6-cylinders, 1998 cc engine displacement (gasoline). 41 4-cylinders, 2286 cc engine displacement (gasoline). 5/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline). Source: "Preliminary Draft Highway User Costs," Louis Berger International, Inc., Muttrah, Oman, January 1976. May 1977 TABLE 9 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Summary of Vehicle Operating Costs on Level Tangent Roads - Engineered Gravel Baizas per Kilometer 2/ Speed 3/ 4/ 5/ Kilometers/hour Datsun - Land Rover - Bedford Truck - 10 49.0 53.4 162.4 20 44.8 48.2 148.6 30 44.1 47.3 145.3 40 43.2 47.0 144.0 50 43.3 47.9 145.2 60 44.1 49.2 147.3 70 44.3 50.3 150.8 80 45.6 52.5 156.2 90 46.8 54.3 163.9 100 48.8 110 51.8 / Includes motor fuel, motor oil, tires & tubes, maintenance, depreciation, interest, insurance, taxes and fees, and (for Bedford truck only) driver's salary. 2/ 1 Omani Rial 1000 Baizas US$2.90. 3/ L20A, 6-cylinders, 1998 cc engine displacement (gasoline). 4/ 4-cylinders, 2286 cc engine displacement (gasoline). 5/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline). Source: "Preliminary Draft Highway User Costs," Louis Berger International, Inc., Muttrah, Oman, January 1976. May 1977 TABLE 10 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Summary of Vehicle Operating Costs on Level Tangent Roads - Maintained Track Baizas per Kilometer 2/ Speed Lan Roer Kilometers/hour Datsun - Land Rover 4 Bedford Truckv5/ 10 53.0 58.0 173.8 20 48.6 52.7 160.1 30 48.2 52.0 157.8 40 47.6 52.1 157.8 50 47.8 53.7 160.7 60 49.1 55.6 164.6 70 49.6 57.2 170.2 80 51.3 60.2 177.8 90 52.9 62.8 188.5 100 55.6 - - 110 59.5 1/ Includes motor fuel, motor oil, tires and tubes, maintenance, depreciation, interest, insurance, taxes and fees, and (for Bedford truck only) driver's salary. 2/ 1 Omani Rial 1000 Baizas US$2.90 3/ L20A, 6-cylinders, 1998 cc engine displacement (gasoline) 4/ 4-cylinders, 2286 cc engine displacement (gasoline) 5/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline) Source: "Preliminary Draft Highway User Costs", Louis Berger International, Inc., Muttrah, Oman, January 1976 May 1977 APPRAISAL OF TABLE 11 A HIGHWAY MAINTENANCE PROJECT OMAN Summary of Vehicle Operating Costs on Level Tangent Roads Track Baizas per Kilometer 2/ Speed 3/'Ln ovr-5 Kilometers/hour Datsun - Land Rover Bedford Truck - 10 60.4 62.5 185.6 20 56.2 57.4 172.2 30 56.2 57.3 171.7 40 56.2 58.0 173.9 50 56.5 60.3 178.9 60 58.3 63.0 185.4 70 59.2 65.4 193.6 80 61.6 69.5 204.6 90 63.7 72.8 219.0 100 67.3 110 72.1 1/ Includes motor fuel, motor oil, tires and tubes, maintenance, depreciation, interest, insurance, taxes and fees, and (for Bedford truck only) driver's salary. 2/ 1 Omani Rial 1000 Baizas US$2.90 3/ L20A, 6-cylinders, 1988 cc engine displacement (gasoline) 4/ 4-cylinders, 2286 cc engine displacement (gasoline) 5/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline) Source: "Preliminary Draft Highway User Costs", Louis Berger International, Inc., Muttrah, Oman, January 1976 May 1977 TABLE 12 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Operating Speeds on Various Road Surfaces / Operating Speed in km/hour Reference Vehicle Asphalt Gravel Maintained Track Track Datsun 2/ 80 60 50 40 Land Rover 3/ 70 60 50 40 Bedford Truck -/ 60 50 40 30 1/ From direct observation and estimates: the sustainable average vehicle speed in travel over the road surfaces indicated. 2/ L20A, 6-cylinders, 1988 cc engine displacement (gasoline) 3/ 4-cylinders, 2286 cc engine displacement (gasoline) 4/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline) Source: "Preliminary Draft Highway User Costs", Louis Berger International, Inc., Muttrah, Oman, January 1976 May 1977 TABLE 13 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Direct Operating Costs by Road Surface Type - (Baizas per Kilometer 2/) Speed Datsun A' Kilometer/hour Asphalt Gravel Maintained Track Track 10 22.3 28.0 32.0 39.4 20 19.3 24.9 28.7 36.3 30 19.1 25.3 29.4 37.4 40 19.0 25.4 29.8 38.4 50 19.5 26.4 30.9 39.6 60 20.3 28.0 33.0 42.2 70 21.1 29.0 34.3 43.9 80 21.9 31.0 36.7 47.0 90 22.8 32.7 38.8 49.7 100 24.3 35.3 42.1 53.8 110 26.4 38.8 46.5 59.1 Land Rover 10 27.2 32.9 37.5 42.0 20 23.5 29.2 33.7 38.4 30 23.2 29.6 34.3 39.6 40 23.2 30.4 35.5 41.4 50 24.2 32.2 38.0 44.6 60 25.2 34.4 40.8 48.2 70 25.9 36.2 43.1 51.3 80 27.5 39.2 46.9 56.2 90 28.6 41.6 50.1 60.1 100 30.7 - _ _ 110 33.5 - _ _ Bedford Truck -5 10 64.0 79.4 90.8 102.6 20 56.1 71.5 83.0 95.1 30 55.9 73.4 85.9 99.8 40 56.4 76.6 90.4 106.5 50 58.7 81.7 97.2 115.4 60 60.6 87.2 104.5 125.3 70 63.9 94.1 113.5 136.9 80 67.8 102.3 123.9 150.7 90 72.8 112.5 137.0 167.6 100 78.8 - - - 110 85.3 - 1/ Motor fuel, mDtor oil, tire wear, maintenance and depreciation. 2/ 1 Omani Rial- 1000 Baizasg US$2.90 3 L20A, 6-cylinders, 1988 cc engine displacement (gasoline) 4/ 4-cylinders, 2286 cc engine displacement (gasoline) 5/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline) Source: "Preliminary Draft Highway User Costs", Louis Berger International, Inc., JaMuary 1976 M'aYr 1977 TABLE 14 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Delta "L" Factors, Unpaved Roads - Surface Condition Datsun - Land Rover Bedford Truck Excellent 0.28 0.33 0.35 Good 0.35 0.40 0.42 Fair 0.51 0.48 0.52 Poor 6/ 0.75 0.60 0.65 Bad 1.12 0.90 0.97 1/ Representing the additional direct operating costs imposed by surface condition compared to a paved road in good condition. Thus, for travel over a comparable road link (alignment, gradient, side friction etc.) but with a lower quality surface condition, the DL factors shown represent the additional costs (above the unit cost of 1.00) imposed on traffic at standard operating speeds (see Table 12) with a built in speed change allowance. 2/ L20A, 6-cylinders, 1988 cc engine displacement (gasoline) 3/ 4-cylinders, 2286 cc engine displacement (gasoline) 4/ 300-114, 6-cylinders, 4927 cc engine displacement (gasoline) 5/ Equivalent to a well maintained engineered gravel road 6/ Equivalent to a truck Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc., Muttrah, Oman, December 19, 1976 May 1977 TABLE 15 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN User Cost Increase Factors for Unmaintained Paved Surfaces ADT Category Year >800 200-800 2 200 1977 1.00 1.00 1.00 1978 1.00 1.00 1.00 1979 1.00 1.00 1.00 1980 1.13 1.00 1.00 1981 1.25 1.10 1.00 1982 1.50 1.25 1.10 Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc., Muttrah, Oman (Revision of February 1977) May 1977 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Kilometerage of Highway by ADT Categories -/ (As of January of Year Shown) Paved System 1977 1978 1979 1980 91L 182a c 200 77.2 66.4 57.1 49.1 42.2 36.3 200-800 865.3 1,032.0 896.8 911.2 790.5 685.7 " 800 64.5 185.6 331.1 458.7 586.3 697.0 Total 1,007.0 1,284.0 1,287.0 1,419.0 -/ 1,419.0 1,419.0 Unpaved System - 50 2,514.0 2,162.0 1,859.3 1,599.0 1,375.1 1,182.6 50-200 1,506.0 2,519.2 -/ 2,469.2 2,251.8 2,160.4 2,050.4 >' 200 246.0 456.8 809.5 1,555.2 1,470.5 1,773.0 Total 4,266.0 5,138.0 5,138.0 5,006.0 - 5,006.0 5,006.0 1/ Highways for which DR has maintenance responsibility. Traffic growth projected at 14% per year. 2/ Actual r 3/ Paving of 132 km Nizwa-Ibri M 4/872 km of Ministry of Defense roads turned over to DR Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc., Muttrah, Oman (February 1977 Revision) May 1977 APPRAISAL OF A HIGMiAY MfAINTENANCE PROJECT OMAN Unpaved System ADT Categories & Surface Condition Existing and, By Year, With Improved Maintewnaoe (Kilometers) V~0LE - MOMETERS PER YEAR (1C0,000) SURFACE CONDITION SURFACE CONDITION EXCL. GOOD FAIR BAD V.BAD CATEGCRY KMS % kis X knm % kss % kms % nkms AVERAGE EXCL. GOOD FAIR BAD V.RAD TCTALS 1977 < 50 2,514 5 126 15 377 30 754 30 754 20 503 30 ' 13.8 41.3 82.6 82.6 55.1 275.4 (EXIST.) 50-200 1,506 5 75 10 151 20 301 30 452 35 527 125 ' 34.2 68.9 137.3 206.2 240.4 687.0 > 200 246 0 0 5 12 10 25 30 74 55 135 308 -' - 13.5 28.1 83.2 151.8 276.6 (4,266) (201) (540) (1,080) (1,280) (1,165) (48.0) (123.7) (248.0) (372.0) (447.3) (1,239.0) < 50 2,162 10 216 25 541 40 865 15 324 10 216 30 23.7 59.2 94.7 35.5 23.6 236.7 1978 50-200 2,519 20 504 20 503 25 630 15 378 20 504 125 230.0 229.5 287.4 172.5 229.9 1,149.3 > 200 457 30 "37 35 160 10 46 10 46 15 68 330 165.0 - 192.7 55.4 55.4 81.9 550.4 (5,138) (857) (1,204) (1,541) (748) (788) (418.7) (481.4) (437.5) (263.4) (325.4) (1,936.4) <50 1,859 20 372 35 650 30 558 10 186 5 93 30 40.7 71.2 61.1 20.4 10.2 2C3.6 1979 50-200 2,469 30 741 ,0 740 20 494 10 247 10 247 125 338.1 337. 6 225.4 112.7 112.7 1,126.5 >200 - 810 50 405 30 243 10 81 5 41 5 40 v)3 521.8 313.1 104.4 52.6 51.5 1,043.6 (5,138) (1,518) (1,633) (1,133) (474) (380) (900.6) (721.9) (390.9) (185.9) (174.4) (2,373.7) < 50 1,599 20 320 40 640 35 559 5 80 - - 30 35.0 70.1 61.2 8.8 - 175.1 1980 50-200 2,252 40 901 30 676 20 450 10 225 - - 125 411." 308.4 205.3 102.7 - 1,027.5 > 200 1,155 60 693 30 346 10 116 - - - - 377 953.6 476.1 159.6 - - 1 58%3 (5,006) (1,914) (1,662) (1,125) (305) (-) (1,399.7) (854.6) (426.1) (111.5) (-' (2,794.9) < 50 1,375 20 275 45 619 30 412 5 69 - - 30 30.1 67.8 45.1 7.6 _ 150.6 1981 50-200 2 160 50 1,080 35 756 10 216 5 108 - - 125 492.8 344.9 98.5 49.3 - °8;; >200 1,471 70 1,030 25 366 5 73 - - - - 404 1,518.8 542.6 107.7 - - 2,169.1 (5,006) (2,385) (1,743) (701) (177) (-) (2,U41.7) (955.3) (251-3) (56.9) (-) (3,305.2) * 50 1,183 20 237 50 591 30 355 - - - - 30 26.0 64.7 38.9 - - 129.6 1982 50-200 2,o50 55 1,127 35 718 10 205 - - - - 125 514.2 327.6 93.5 - - 935.3 > 200 1,773 80 1,418 20 355 - - - - - - 432 2,235.9 559.8 - - - 2.795.7 (5,006) (2,782) (1,664) (560) (-) (-) (2,776.1) (952.1) (132.4) (-)' (-) (3,860.6) Estimated due to incomplete data but held constant, by category, throughout study period 1977 actual average; but this has been grown at 7% per year to reflect the expected increased traffic (over normal national increase) on these already over-trafficked roads. Note: Percentages of kilometers in each surface condition category come from highway inventory. Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc. (February 1977 revision) M1a, 1977 APPRAISAL OF A HIGRWAY MNXTMEJANCE PROJECT OKAN Uwnpaved System ADT Categories i Surface Condition ziasting and, By Year, Without Improved Maintenance (Kilmters) VEHIICLE -KILOMiUETER PErt YILAR (100,000) SURFACE CONDITION SURFACE CONDITICN ADT E1 CL. GOOD FAIR BAD V.BAD CATEGORY Xf's - % kma % kms % kms % kms % kma AVERAGE EXCL. GOOD FAIR BAD V.BAD TCTALS 1.977 < 50 2,514 5 126 15 377 30 754 30 754 20 503 30 * 13.8 41.3 82.6 82.6 55.1 275.4 (~~EST.) ~ 50-200 1, 506 5 75 10 151 20 301 30 452 35 527 125 * 34.2 68.9 137.3 206.2 240.4 687.0 > 200 246 0 0 5 12 10 25 30 74 55 135 308 e 0.0 13.5 28.1 63.2 151.8 226.6 (4,266) (201) (540) (1,080) (1,280) (1,165) (48.0) (123.7) (248.0) (372.c) (447.3) (1,239.0) < 50 2,162 4.5 97 14.0 303 28.5 616 30.0 649 23.0 497 30 10.6 33.2 67.4 71.1 54.4 236.7 1978 50-200 2,519 4.5 113 9.5 239 19.0 479 29.0 731 38.0 957 125 51.6 109.0 218.6 333.5 436.6 1,1',9.' > 200 457 0 0 4.0 18 9.0 41 26.0 119 61.0 279 330 0.0- 21.7 49.4 143.3 356.1 :jC.5 (5,138) (210) (560) (1,136) (1,499) (1,733) (62.2) (163.9) (335.4) (5.7.9) (227.1) (1,936.5) < 50 1,859 4.1 76 13.0 242 27.0 502 29.9 556 26.0 483 30 8.3 26.5 55.0 60.9 52.9 233.6 1979 50-200 2,469 4.1 1C1 9.0 222 18.0 444 28.0 691 40.9 1,011 125 46.1 101.5 202.6 315.3 461.2 1,126.5 > 200 - 810 0 0 3.2 26 8.0 65 22.6 183 66.2 536 353 0.0 33.5 83.7 23L.8 690.6 1,043.E (5,135) (177) (490) (1,011) (1,430) (2,030) (54.4) (161.3) (341.3) (618.OX1X,204.7) (2,373.7) < 50 1,599 3.6 58 12.2 195 25.6 409 29.6 473 29.0 464 30 6.4 21.3 44.8 51.8 50.8 175.1 1980 50-200 2,252 3.6 81 8.6 194 17.1 385 27.0 608 43.2 984 125 37.0 88.5 175.7 277.4 448.9 1,027.5 > 200 1,155 0 0 2.6 30 7.0 81 19.7 228 70.7 816 377 0.0 41.3 111.5 313.7 1,122.8 1,589.3 (5,0W6) (139) (419) (875) (1,309) (2,264) (43.4) (151.1) (332.0) (642.9X1,622.5) (2,791.9) < 50 1,375 3.3 45 11.3 155 24.2 333 29.2 402 32.0 440 30 4.9 17.0 36.5 44.0 48.2 150.6 1981 50-200 2,160 3.3 71 8.0 173 16.3 352 26.0 562 46.4 1,002 125 32.4 78.9 160.6 256.4 457.2 985.5 >200 1,471 0 0 2.1 31 6.1 90 17.2 253 74.6 1,097 404 0.0 45.7 132.7 373.1 1,617.6 2,169.4 (5,006) (116) (359) (775) (1,217) (2,539) (37.3) (141.6) (329.8) (673.5X2,1-23.0) (3,305.2) < 50 1,183 30 35 10.5 124 22.9 271 28.7 340 34.9 413 30 3.8 13.6 29.7 37.2 45.2 '129.5 1982 50-200 2,050 30 62 7.5 154 15.5 313 25.0 512 49.0 1,004 125 28.3 70.3 145.1 233.6 458.1 9355.3 >200 1,773 0 0 1.7 30 5.3 94 15.0 266 78.0 1,383 432 0.0 47.3 148.2 419.4 2,180.7 2,795.7 (5,006) (97) (308) (683) (1,118) (2,800) (32.1) (131.2) (323.0) (690.2X2.684.0 (3,E60.5 Estimated due to incomplete data but held constant, by category, throughout study period. 1977 actual average; but this has been grown at 7% per year to reflect the expected increased traffic (over normal national increase) on these alrendy over-trafficked roads. r Notes Percentages of kilometers in each surface condition category come from highway inventory. F' Source: 'Special Draft Raport Five-Year Physical Maintenance Program 1978/1982", Louis Berger Internation, Inc. (February 1977 revision) MaY 1977 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Total Equivalent Kilometerage (Paved System, No Surface Maintenance) Equivalent Vehicle-Kms/Yr, Year/ ADT Category Vehicle-Kms/Yr User Cost 2/ No Maintenance Year ADT Category Kms Average (100,000) Increase Factor - (100,000) < 200 77.2 180 50.7 1.00 50.7 1977 200-800 865.3 500 1,579.2 1.00 1,579.2 >800 64.5 1,560 3/ 367.2 1.00 367.2 <200 66.4 180 43.6 1.00 43.6 1978 200-800 1,032.0 500 1,883.4 1.00 1,883.4 >800 185.6 1,669 1,130.6 1.00 1,130.6 <200 57.1 180 37.5 1.00 37.5 1979 200-800 896.8 500 1,636.7 1.00 1,636.7 >800 333.1 1,786 2,171.4 1.00 2,171.4 <200 49.1 180 32.3 1.00 32.3 1980 200-800 911.2 500 1,662.9 1.00 1,662.9 >800 458.7 1,911 3,199.5 1.10 3,519.5 <200 42.2 180 27.7 1.00 27.7 1981 200-800 790.5 500 1,442.7 1.10 1,587.0 >800 586.3 2,045 4,376.3 1.25 5,470.4 <200 36.3 180 23.8 1.10 26.2 1982 200-800 685.7 500 1,251.4 1.25 1,564.3 >800 697.0 2,188 5,566.4 1.50 8,349.6 1/ See Table 16 2/ See Table 15 3/ Average ADT growth for >800 category assumed as 7% per year Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc., Muttrah, Oman (Revision of February 1977) May 1977 TABLE 20 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Total User Savings, Maintenance Program (in millions of Omani Rials)l/ 1978 1979 1980 1981 1982 Total Unpaved Roads 50 ADT 0.19 0.26 0.30 0.27 0.25 1.27 50-200 ADT 1.16 1.90 1.99 2.51 2.55 10.11 200 ADT 1.82 3.15 5.53 7.96 10.77 29.23 Subtotal 3.17 5.31 7.82 10.74 13.57 40.61 Paved Roads 200 ADT - - - - 0.02 0.02 200-800 ADT - - - 1.15 2.48 3.63 800 ADT - - 2.54 8.69 22.10 33.33 Subtotal - - 2.54 9.84 24.60 36.98 Total 3.17 5.31 10.36 20.58 38.17 77.59 1/ 1 Omani Rials = US$2.90 Source: "Special Draft Report Five-Year Physical Maintenance Program 1978/1982", Louis Berger International, Inc. (February 1977 Revision) lvay 1977 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Three-Year and Five-Year Cost Estimates for Routine Maintenance (US$ '000) 1978 1979 1980 Three-Year Totals 1981 1982 Five-Year Totals Item Local Foreign Local Foreign Local Foreign Local Foreign Total Local Foreign Local Foreign Local Foreign Total A. Highway Maintenance (i) a. Purchase of equipment - 1,044 - 713 - 1,743 - 3,500 3,500 - 700 - 575 - 4,775 4,775 b. Purchase of equipment spares - 420 - 420 - 660 - 1,500 1.500 - 473 - 493 - 2.466 2.466 - 1,464 - 1,133 - 2,403 - 5,000 5,000 - 1,173 - 1,068 - 7,241 7,241 (ii) a. Construction of workshops 400 3,600 - - 200 800 600 4,400 5,000 - - - - 600 4,400 5,000 b. Workshop machinery, tools & supplies 3 608 35 52 66 253 104 913 1.017 76 105 87 120 267 1.138 1.405 403 4,_208 -35 -52 -266 1-,053 -704 5,313 6,017 76 105 87 120 867 5,538 6,405 (iii) a. Fuels, oils & lubricants 900 - 1,000 - 1,100 - 3,000 - 3,000 1,100 - 1,100 - 5,200 - 5,200 b. Headquarter & soil lab. buildings construction & equipment; survey & communications equipment; building maintenance, utilities, highway, office & general supplies 365 2.239 172 201 201 219 738 2.659 3.397 215 236 226 273 1.179 3.168 4.347 1,265 2,239 1,172 201 1,301 219 3,738 2,659 6,397 1,315 236 1,326 273 6,379 3,168 9,547 (iv) a. Maintenance, managemen expatriate personnel, salaries & allowances 100 600 100 600 100 600 300 1,800 2,100 75 450 75 450 450 2,700 3,150 b. Local staff salaries, overtime & allowances 2.500 - 3,200 - 4.000 - 700 - 9.700 4.400 - 4.400 - 18,500 - 18.500 2.600 600 3.300 600 4.100 600 10,000 1,800 11,800 4,475 450 4.475 450 18.950 2.700 21.650 Total for Highway Maintenance 4.268 8,511 4,507 1,986 5.667 4.275 14.442 14.772 29.214 5,866 1.964 5.888 1.911 26.196 18.647 44.843 B. Training a. Classrooms construction & equipment 80 320 - - - - 80 320 400 - - - - 80 320 400 b. Program in Oman 134 434 133 433 133 433 400 1,300 1,700 200 - 200 - 800 1,300 2,100 c. Overseas fellowships - 67 - 67 - 66 - 200 200 - 50 - 50 - 300 300 Total for Training 214 821 133 500 133 499 480 1.820 2.300 200 50 200 50 880 1.920 2.800 C. Total for Technical Assistance 100 300 100 300 100 300 300 900 1,200 - - - - 300 900 1,200 D. Total A + B + C 4,582 9,632 4,740 2,786 5,900 5,074 15,222 17,492 32,714 6,066 2,014 6,088 1,961 27,376 21,467 48,843 E. Contingencies at 10% 458 963 474 279 590 507 1,522 1.749 3.271 607 201 609 196 2.738 2,146 4.884 F. Total D + E 5,040 10,595 5,214 3,065 6,490 5,581 16,744 19,241 35,985 6,673 2,215 6,697 2,157 30,114 23,613 53,727 G. Escalation (Local) 1,191 - 2,199 - 4,121 - 7,511 - 7,511 5,874 - 7,784 - 21,169 - 21,169 H. Escalation (Foreign) - 1,305 - 653 - 1,628 - 3.586 3.586 - 846 - 1033 5,465 5.465 Total Cost Estimates 6.231 11,900 7.413 3.718 10,611 7.209 24255 22827 47082 12,547 3.061 14,481 3190 51283 May '977 APPRAISAL OF A EIGHWAY MAINTENANCE PROJECT QMAN Three-Year and Five-Year Cost Estimates for Periodic Maintenance S (US' 000) 1978 1979 1980 Three-Year Totals 1981 1982 Five-Year Totals Item Local Foreign Looal Foreign Local Foreign Local Foreign Total Local Foreign Looal Foreign Local Foreign Total J. Provision 150 mm Gravel Basel/ - - 250 500 500 1,000 750 1,500 2,250 750 1,500 750 1,500 2,250 4,500 6,750 K. Bitumen Seal Coast-/ - - - - 200 600 200 600 800 400 1,000 100 400 700 2,000 2,700 L. Hot Rolled Asphalt Overlas/ - - - - - - - - - 600 1,800 - - 600 1,800 2,400 M. Highway Rehabilitation2/ 500 1,000 400 800 300 600 1,200 2,400 3,600 200 400 100 200 1,500 3,000 4,500 N. Special Repairsl/ 200 300 100 300 100 200 400 800 1,200 100 100 100 100 600 1.000 1.600 P. Total J-N Inclusive 700 1,300 750 1,600 1,100 2,400 2,550 5,300 7,850 2,050 4,800 1,050 2,200 5,650 12,300 17,950 Q. Contingencies at 10% 70 130 Jj_ 160 110 240 2g5 530 785 205 480 105 220 565 1.230 1,795 R. Total P + Q 770 1,430 825 1,760 1,210 2,640 2,805 5,830 8,635 2,255 5,280 1,155 2,420 6,215 13,530 19,745 S. Escalation (Local) 180 - 345 - 770 - 1,295 - 1,295 1,985 - 1,345 - 4,625 - 4,625 T. Esoalation (Foreign) - 170 - 375 - 770 - 1,315 1,315 - 2,020 _ 1,160 - 4.495 449 Total Cost Estimates 950 1.600 1,170 1 1,980 10 4.100 1 11,245 4.240 7.300 2,500 3.580 10.8hO 18.025 28.865 / NOT inoluded in the project; assumed to be part of Capital Budget. L By Force Account OR Contractors. / By contractors. Source: Consultants' and Mission's estimates. May 1977 TABLE 23 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Training Equipment and Materials Required For Training Program Item Estimated Item Cost(US$) A. Furniture and Related Equipment, Training Center 60,000 B. Heavy Maintenance Equipment 2 Gradersl- 62,000 1 Front End Loader l/ 23,000 1 Dozer l/ 50,000 1 Roller 1/ 10,000 6 Tippers 1/ 100,000 1 Tractor 30,000 3 Trucks 1/ 25,000 Subtotal 300,000 C. Mobile Workshop Equipment, Handtools and Materials 200,000 D. Audio-Visual Training Aids 20,000 E. Training Production Unit Camp, Facilities and Equipment 150,000 Total 730,000 / Used. To be drawn from existing stock. Not included in training program costs shown in para. 4.18. May 1977 APPRAISAL OF A HIGSWAY MAINTANCE PROJECT Y OMN Numbers. Estimated Costs and Years of Deliverv for Plant and EaUi eot (Nu:sers and USS) MD2/ DR Three-Year Five-Yaw laventory Inventory 1978 1979 1980 Totals 1981 1982 Totals Item Jsn.77/78 Jan. 78 Total No. cost No. Coat No. Cost No. Cost No. Cost No. Cost J1L Cost I Mechanical Broom 2 21,942 3 32,913 5 54,855 5 54,853 2 Air Compressor, 125 cu. ft. 5/1 1 6/2 1 14.628 1 14.628 1 14,628 3 Payement Brsaker 2 3,048 6 9,144 8 12,192 8 12,192 4 Sinker Rock Drill 2 7,842 6 19,746 8 27,588 8 27,58 5 Pneumatic T aper 2 1,462 6 4,386 8 5,848 8 5,848 6 Concrete Vibrator, Pneumatic 2 1,462 8 5,848 10 7,310 10 7,316 8 Concrete Mixer, 9 cu. ft. 3/3 1 4/4 2 17,066 1 8,533 3 25,599 3 25,599 12 Fuel Tanker Trailer, 3,000 uS gal. 1 29,256 1 29,256 1 29,256 3 87,768 3 87,768 13 Pvaement Striper, Self-propelled 1 6,095 1 6,095 1 6,095 3 18,285 3, 18,285 13 Pavement Striper, Manually Operated 1 3,657 1 3,657 2 7,314 4 14,628 4 14,628 15 Generator, 125 KVA 4/1 4/1 5 79,235 2 31,694 7 110,929 7 110,929 16 Forklift Truck 5 73,140 2 29,256 7 102,396 7 102,396 17 Water Pump 7/0 7/0 5 18,285 2 7,314 2 7,314 9 32,913 9 32,913 18 Arc Welder, 300 amp. 5/2 5/2 5 30,475 2 12,190 7 42,665 7 42,665 19 Track-type Tractor 5/0 5 10/5 20 Motor Grader, 125 h.p. 21/15 33 54/48 2 129,168 2 129,168* 2 t29,168 2 129,168 6 387,504* 21 Roller, Three Steel Wheels, 8 to 10 tons 1/1 1/1 22 Roller, Tandem Steel Wheels, 4 to 6 tons 1 1/1 2 33,488 2 33,488 2 33,488 23 Roller, Tandem Steel Wheels, 8 to 10 tons 3/3 1 4/4 24 Roller, Pneutatic Tyres, 10 to 15 tons 1/0 1 2/1 24 Front End Loader, Wheel Type, 2 cu. yd. 14 14/14 2 93,288 2 93,288* 2 93,288 2 93,288 6 279,864* 25 Front End Loader, Wheel Type, 4 cu. yd. 5/5 5/5 27 Car, Saloon, 5-passenger 3 3/3 1 5,787 3 17,361 3 17,361 7 40,509* 1 5,787 2 11,574 10 57,870* 28 Crane, 2 tons capacity 1/0 1/0 2 92,644 2 92,644* 2 92,644* 29 Truck, 40-passenger Bus Body 5 146,280 2 58,512 7 204,792* 7 204,792* 29 Truck, Flat Bed, Cargo Body 1/1 1/1 3 65,826 3 65,826 6 131,652* 6 131,652* 29 Truck, Dump, 7 cu. yd. 11/7 15 26/22 5 127,995 3 76,797 16 409,584 24 614,376* 8 204,792 8 204,792 40 1,023,960* 29 Truck-mounted Water Tank, 1,750 115 gal. 7/7 1 8/8 1 28,037 7 196,259 8 224,296 1 28,037 9 252,333* 29 Truck-mounted Fuel Tank, 1,750 US gal 4/3 4/3 2 56,074 2 56,074 4 112,148 1 28,037 5 140, 185 29 Truck-mounted Lubrication Unit 6 190,164 2 63,388 8 253,552 8 253,552 29 Stationery Lubrication Unit 2/0 2/1 5 33,525 2 13,410 7 46,935 . 7 46,935 29 Truck, Flat Bad with Crane Hoist 2/2 2/2 1 29,256 1 29,256 2 58,512 1 29,256 3 87,7U U Thick, wracksl 1 1/1 31 Truck-tractor Unit 1 46,322 1 46,322* 1 .U,32i* 30 Truck-tractor Unit with Winch 1/0 1 2/1 1 56,074 1 56,074* 1 56,074* 30 Truck-mounted Water Tank, 3,000 US gal. 2/0 2/0 2 102,396 2 102,396 2 102,396 6 307,188 6 307,188 30 Low Loader Trailer, 50 tons 1 26,818 1 26,818* 1 26,818* 30 Loader Trailer, 35 tons 1 1/1 * * 31 Truck, Pick-up, 4 x 4 30/26 25 55/51 3 23,772 5 39,620 8 63,392* 5 39,620 5 39,620 18 142,632* 31 Truck, Crew Cab, 4 x 4 2 19,504 2 19,504 2 19 504 6 58,512* 2 19,504 2 19,504 10 97,520* 31 Truck, Station Wagon, 4 x 4 1/1 5 6/6 2 19,854 2 19,854 4 30,708 2 19,854 2 19,854 8 79,416* 32 Fuel Tanker Trailer, 1,750 US gal. 6 87,768 2 29,256 8 117,024 8 117,024 33 Water Tanker Trailer, 300 US gal. 4/0 4/0 12 14,628 4 4,876 16 19,504 16 19,504 35 Aggregate Conveyor 1 14,628 1 14,628 2 29,256 1 14,628 3 43,884 37 Generator, 35 KVA 7/0 7/0 35 Screening Plant 1 144,000 1 144,000* 1 144,000 2 288,000* - Scrapers, 14-28 cu. yd. 8/0 8/0 _*__ _ _ _ * * Subtotals 141/78 109 250/187 71 1,044,118 .42 713,207 105 1,743,437 218 3,500,762 25 698,678 25 575,093 268 4,774,533 Contingencies at 10% - - - - 104,412 - 71,321 - 174,344 - 350,077 - 69,868 2 57,509 - 477,454 Escalation - _ - - 141.500 - 167.182 - 559.419 - 868,101 - 293.664 - 302.888 - 1.464.653 Total Estiated Costs78 J 109 ?,250/187 !A Total Estimated Costs ______ ±u 109 2_ 250/187 71 2290.030 951.710 105 2 477 200 218 4.718.940 25 1.062.210 25 935.490 268 6 716.640 1/ 5,138 km of gravel/earth roads (January 1978) 2/ Second Figure represents consultants' estimate of MD residual plant and equipment in January 1978. 3I Values of January 1978 inventory totals NOT included in three- and Five-year totals. May 1977 wtaTATIO UCKI calc. YYYYYYYY .C b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ITEM ACTIVITY 1977 1978 1979 i9B0 1981 982z ZF FMIAIMI JIJA SON ID J IF MIM|A|M1|J|T|A|5 |O|N|DJIFl ItM| T|TIAIS J OIN ID 1JIF IMIAIF1 ITI|J|A IS |O|N|D JIF|MIA IM|J|J|A IS JOIN |D: T|F IM|A IM IT ITIAIS |OINID RETURN OF APPRAISAL MISSION FIVE YEAR MAINTENANCE PROCRAM APR PROTECT PQEPARATION BEFORE NEGOTIATIONS u 0----- TH4REE YEAR MAINTENANCE PROTECT- NGN LOAN NEGOTIATIONS BRD BOARD PRESENTATION SIG SIGNATURE OF LOAN AGREEMENT EFF LOAN EFFECTrIVENESS xx CONSTRUCTION HI.Q.IBVILDJNG.WORKSHOP & TRAINING CENTER t-1 2PREPAPATION OP BID DOCUMENTS -2 PREPARATION OF BIDS 1-3 EVALUATION OF BIDS L CONTRACT AWARD X 1-4 CONSTRUCTION PERIOD XIK" REG IONAkL WORKSHOPS i-I PREPARPATION OP BID DOCUMENTS t-? PREPARATION OP BIDS - 1.3 EVALUATION OF BIDS A CONTRACT AWARDS t-5 CONSTRUCTION PERIODS 3H.RIII$I IIIII I t-1. SE-,TpUP M4AIN FEN5AN`CE. CAMPS MAINTENANCE EQUIPMENT & SPARE PARTS 2-1 PRE-PARATION OF BID DOC-UMENTS 2-2 PREPARATION OF BIDS 2-3 EVALUATION OF BIDS&Z CONTRACT AWARDS 2*4 SUPPLY OF EQUIPMENT & SPARES FOB.I 2.5 SHIP EQUIPMENT & SPARES 2-(. PORT CLEARANCE 2-7 PREPARE, ASSEMB3LE & COMMISSION EQUIPMENT 2-8 ASSICN EQUIPMENT & CREFWS To I.Q.& REGIONS ASSIrGNMENTSCONTINUE-$ MiAINTENANCE MANAGEMENT/ TRAINING I 3-0 PREPARATION OF TERMS OF REFERENCE 3.1 INVITE PROPOSALS 34Z ANALYSIS OF PROPOSALS 3-3 APPOINTMENT & MOBILIZATION OF CONSUL-TANTS 3-h EVALUATION OF EYISTINQ DR PERSONNEL 3.5 RESTRUCTURE DR MAINTENANCE SECTION 3-(. RECRUIT FIRST BATCH MAINTENANCE: TRAINEES 3-7 FIRST TRAINING COURSE OF SERIES X~TAlNING. CONTINUES 3.8 ASSIGN EXISTINGA DR STAFF TO H.Q.&RECIONS HiII EICISTINrG EQUIPMrtNT & CREWS . NEW &E%(ISTING EQUIPMENT & CREWS--- 3-9 MAINTENANCE OPERATION-X 3.10 MAINTENANCE MANAGEMENT TECHNICAL ASSISTANCE. TO DR. - PREPARATION OF TER-MS OF REFERENCE - INVITE PROPOSALS -ANALYSIS OF PROPOSALS -APPOINTMENT & MOBILIZATioN OF CONSULTANTS -CONSULTANTS STAFF WITH DR... IIrI IIIII 1-TT IIFTIFIIIII TABLE 26 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Proposed Table for Schedule I, Loan Agreement Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Highway Maintenance: (a) Maintenance equipment 100% of foreign and spares 5,000,000 expenditures (b) Workshop construction 4,000,000 80% (2) Training (a) Classrooms construc- 100% of foreign tion and fittings 300,000 expenditures (b) (i) Operation of program in Oman including 100% of foreign e Equipment 1,280,000 expenditures (ii) Audio/Visual equipment 20,000 80% (c) Overseas Fellowships 200,000 100% of foreign expenditures (3) Consultants Services: (a) Maintenance management services pursuant to Part 100% of foreign B.1 of the Project 1,800,000 expenditures (b) Technical assistance pursuant to Part B.3 of 100% of foreign the Project 900,000 expenditures (4) Unallocated 1,500,000 Total 15,000,000 May 1977 0 UIODEWO DAISDEEAOIOE ORTSUCH ~ ~ ~ ~ ~ - TTT-AIXOILT,T~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ IGDIGNOTODO UA:ONACEPRS FLOAT AT DAR ODSTEUCTIA A 3 1.A Y 4 o 1 ODRSRUTE P1 IO FOR REDEAR WORKSHOP " ,I ",I IOp qs-L T A-7 \1.0 1SET .F TODD AILIRIOD ACTIVITY DESIQATIO E:~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~OE CRIICA PAT L ETSIN -ESoN -> -lEn IE -P -, - - - -_ E.SSUI t 1l RE 'Rl.ANIAtII,I'. 11F DlNECloRATe OF ROA 'O/tT\ 0.2Fs1N PRRTARADDD OP BIOd aS NSAPFEIA 2 1 C nlAPPED R uDIERE rIPO e. DLREs EIN POR CLNERRAN PR OPhRAITIPDN O S- 2. 5110 LORITIPNMIETET ARDS HAOAeHeu L~~~~~~~~~~~~~~OE evT%AL PATHOI HAF3E Z TEROGuE VLOATSO LS \ w iL~ .70slu APPCLTIS4 'IABLE 28 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Economic Justification for the Routine Highway Maintenance Program At an Assumed 15% Opportunity Cost of Capital (U.S. $ Millions) Year Cost Benefits Actual Present Worth Actual Present Worth 1978 6.77 6.77 9.19 9.19 1979 4.79 4.17 15.40 13.40 1980 9.16 6.92 30.04 22.71 1981 5.26 3.46 59.68 39.27 1982 4.68 2.68 110.69 63.32 Total 24.00 147.89 B:C Ratio= 6.16:1.00 At an Assumed 20% Opportunity Cost of Capital (U.S. $ Millions) Year Cost Benefits Actual Present Worth Actual Present Worth 1978 6.77 6.77 9.19 9.19 1979 4.79 3.99 15.40 12.83 1980 9.16 3.36 30.04 20.85 1981 5.26 3.05 59.68 34.56 1982 4.68 2.26 110.69 53.35 Total 22.43 130.78 B:C Ratio- 5.83:1.00 With Costs Assumed 20% greater and Benefits. 20% less (at 20% Opportunity Cost of Capital) (U.S. $ Millions) Year Cost Benefits Actual Present Worth Actual Present Worth 1978 8.12 8.12 7.35 7.35 1979 5.75 4.79 12.32 10.26 1980 10.99 7.63 24.04 16.68 1981 6.32 3.66 47.75 27.64 1982 5.62 2.71 88.55 42.68 Total 26.91 104.61 B:C Ratio--3.89:1.00 Source: Mission Estimate May 1977 APPRAISAL OF TABLE 29 A HIGHWAY MAINTENANCE PROJECT OMAN Workshop Equipment Schedule Azaiba, Salalah, Sohar, Ibra and Nizwa and Haima Ibri Item 1978 (No.) 1980 (No.) Precision Lathe, 17" 2 - Precision Lathe, 10" 5 2 Bench Shaper 2 - Milling Machine 2 Surface Grinder 36" 2 - Power Hacksaw 5 2 Cylinder Boring Machine 2 - Drill Stand 3 2 Bench Drill Press 8 2 Floor Drill Press 2 - Aobile Floor Crane 5 2 Valve Refacer 2 - Vertical Hydratllic Press, 50 ton 3 2 Vertical Hydraulic Press, 150 ton 2 - Bench Hydraulic Press 2 - Arbor Press 3 2 Arbor Saw, Tilting 10" 2 - Electric Circular Saw 5 2 Fuel Injector Pump Calibration Stand 1 - Electric Air Compressor 150 cfm 2 - Bench Grinder 18 6 Pedestal Grinder 2 - Crankshaft Grinder 1 - Wheel Balancer 3 2 Injection Nozzle Tester 2 - Cylinder Honer 2 - Tyre Demounter 8 2 Armature Tester 8 2 Alternator Test Stand 2 - Commutator Turner 2 Armature Mica Cutter 2 Diamond Dresser & Holder 5 Steam Cleaner 6 2 Water Distiller 8 2 Riveting Machine 5 _2 136 May 1977 ANNEX A-1 Page 1 APPRAISAL OF A HIGIWAY MAINTENANCE PROJECT OMAN Definitions ROUTINE MAINTENANCE: financed from RD Annual Recurrent Budget. Surface (i) patching asphalt pavement; (ii) patching surface treat-.ent pavement; (iii) reshaping gravel- or un-surfaced roads: Base, Subbase and (iv) replenishment of traffic- or weather-eroded gravel Shoulders base course; (v) repairing of localized base and subbase failures; (vi) reshaping and restoring shoulders of paved, gravel and unpaved roads; Drainage (vii) clearing, cleaning and reshaping side, turn-out, toe and catchwater drains; (viii) upkeep of pavements of wadi crossings; (ix) clearing, cleaning and reshaping culvert inlets and outlets; (x) erosion control for all wadi crossings, culverts and drains; (xi) culvert repairs and replacement; (xii) installation of additional culverts up to 1,000 mm diameter; Structures (xiii) painting; (xiv) minor repairs; Marking and Signs (xv) restriping and remarking paved roads; (xvi) repairing and reDlacing road signs Other (xvii) clearing of regenerated bush within road formation width- (xviii) control of drifting sand; (xix) minor vertical and horizontal alignments improve- ments, UD to a financial limit laid down bv DRHQ. AmiLJ: 1. Wreouencv of reshaping gravel- or un-surfaced roads and replen- ishment of gravel base course, (iii) and (iv) above, will depend on (a) traffic volume and composition, (b) climatic conditions, and (c) observed running surface conditions. Grader requirements have been evaluated from: ANNEX A-1 Page 2 (a) an annual usage of 1,500 hours; (b) 3-pass blading at 4 kph; (c) 4 bladings per year for AADT less than 50 VPD 12 bladings per year for AADT between 50 and 200 VPD, and 24 bladings per year for AADT over 200 VPD; (d) shoulders and drainage twice annually, operating speed 3 kph. Volumes for gravel replenishment has been calculated by assuming an annual loss of 20 mm of gravel for each 100 AADT and the equip- ment for excavating, hauling and spreading (front end loaders, dump trucks and graders) matched to the calculated volumes. 2. All other tasks, except (xix), are regular "housekeeping" tasks carried out daily or as required by traffic, weather and observed conditions. 3. Minor vertical and horizontal alignment improvements, (xix), in each maintenance region would require RDHQ authority to incur expenditure after their review of the cost estimate provided to them by the region concerned. PERIODIC MAINTENANCE: financed from RD Capital Development Budget. Pavement (i) 50-100 mm hot-rolled asphalt overlay for paved roads; (ii) resealing of bituminous surface-treated roads; (iii) provision of 150 mm of gravel base course; (iv) provision of new subbase, base and pavement (rehabilitation); Earthworks (v) major improvements in horizontal and vertical alignments of existing roads; (vi) major improvements to road corss-sections; Drainage Structures (vii) new bridges; (viii) additional culverts greater than 1,000 mm diameter; (ix) major repairs to structures; Markings and Signs (x) new road furniture; (xi) replacement of guardrails. NOTES: 1. All items of periodic maintenance for any one fiscal year would require capital development budget allocations based on the main- tenance region's cost estimates and approved by the Director General of Finance during the year preceding the cne durin- 'which the work would be carried out. ANNEX A-1 Page 3 2. No periodic maintenance by RD force account is envisaged during the first three years of the five-year maintenance program be- cause the RD's capability for such work will not have been developed sufficiently. 3. Major highway repairs due to inclement weather, geological causes or any other force majeure would be dealt with by special alloca- tions to the Capital Development Budget. May 1977 ANNEX A-2 Page 1 APPRAISAL OF A HIGHWAY MAINTENA.NCE PROJECT OMAN Draft Terms of Reference Maintenance Management/Training Services Roads Department I. DEFINITIONS 1. Consulting services over a three-year period are required to assist the Ministry of Communications and Public Services (MC) and the Roads Depart- ment (RD) of the Sultanate of Oman, both centrally and at a regional level, in the implementation of a Five-Year Physical Maintenance Program (hereinafter termed 'the Program") and in the development and implementation of a training proguam (hereinafter termed "Training") for skilled and semi-skilled labor. 2. When mentioned together, the above two disciplines will be termed "The Services"; the consultants providing The Services will be termed the "MM/T Consultants". 3. The consulting team providing general technical assistance to the MC/RD will be referred to as "The Consultants." II. INTRODUCTION 4. A Program for the maintenance of the Oman highway network has been prepared by The Consultants on behalf of the Oman Government. The Program defines the locations and facilities for headquarters and regional workshop com- plexes (Attachment C)1/ and sets forth year-by-year equipment and personnel re- quirements. The MM/T Consultants will have the opportunity to review the Program and make recommendations for improvements, the acceptance of which will be sub- ject to the approval of the Government. 5. The Consultants' present contract calls for their services through to the end of 1978. They have been active since 1975 in reviewing and analyz- ing highway construction and maintenance conditions in Oman; the present methods of highway maintenance being practiced; the present methods of main- taining and repairing Government vehicles and the maintenance equipment fleet; and identifying investment, operational, organizational, budgetary and all other requirements necessary to develop the Program. 6. All reports, maps, manuals, position papers, etc. produced by The Consultants, will be available to the M/T Consultants. Also during the period of overlap, the staff of The Consultants will be available for discus- sions whenever required by the MM/T Consultants. 1/ Map 3. ANNEX A-2 Page 2 7. Although in the same contract, the Program and Training, where appropriate, will be treated separately in these Terms of Reference. 8. The MM/T Consultants should be aware that the RD, at least for the next few years, does not contemplate any major periodic asphalt maintenance work by its direct labor; this type of work will be carried out by competitive tender. III. MAINTENANCE MANAGEMENT OBJECTIVES 9. The primary objective in this sector will be to: (a) implement a highway maintenance program and procedures as recommended by the Consultants and/or as amended by the MM/T Consultants (with approval of the Government); and (b) continually review and update the program to provide the RD with an ongoing five-year maintenance program. 10. In addition, the MM/T Consultants will generally assist the RD in: (a) maintenance and workshop equipment bid analyses and procure- ment (The Consultants have produced all specifications and bidding documents which should have received the approval of the Government by the time the MM/T Consultants mobilize); (b) the setting up of one headquarte s, one sub-headquarters and two regional workshop complexesT (the specifications and bidding documents for these should have received the approval of the Government-- and may be under construction--by the time the MM/T Consultants mobilize); (c) improving highway maintenance procedures; (d) the setting up and operating of two permanent and two mobile soils/materials laboratories; (e) the utilization of existing borrow pits, quarries and other such facilities that have previously been used during highway construc- tion. (f) locating and evaluating new sources of road surfacing materials and subsequently developing their use; (g) investigating and making recommendations for raod rehabilitation; (h) establishing a functional cost accounting system with the RD for the maintenance program (this responsibility is outlined in Attachment B); and (i) any other matters applicable to road maintenance or the main- tenance of equipment. 1/ See Attachment C ANNEX A-2 Page 3 11. Operational, organizational and administrative procedures for the maintenance program will be adopted through those recommendations of the MM!T Consultants approved by the Government. 12. To the maximum extent possible, the MM/T Consultants will be ex- pected to train any counterparts supplied by the Government in any and/or all categories of professional expertise represented on their team. IV. TRAINING OBJECTIVES 13. To determine the training requirements arising from the maintenance program. 14. To recommend, for the approval of the Government, a detailed train- ing plan to meet the current and future requirements for maintenance personnel, including workshop personnel. 15. To formulate and implement the agreed upon traiming program, taking into consideration that all major periodic asphalt maintenance work will be carried out bv competitive tender for the next few years. V. OPERATION OF THE SERVICES A. Staffing, Maintenance Management 16. The MI/T Consultants will provide a team (full and part-time, de- pending on actual needs by discipline) for a period of three years to meet the maintenance management and training objectives detailed above. 17. In addition to this Headquarters staff,should the RD not be able to provide sufficient supervisory personnel at the other three stations, the lM/T Consultants may be called upon to assist the RD in recruiting competent personnel. 18. The VMMT Consultants will provide a personnel bar chart in their proposal; the individual tenures may be varied, during the currency of the con- tract, with the explicit approval of the Government. B. Staffing, Training Program 19. This subject is outlined in Attachment A (Annex D-1). C. Work Plan, Maintenance Management 20. During the currency of the contract, new highway maintenance and workshop equipment will arrive in the Sultanate. The work plan and the duties of the individual team members may therefore be considered in two phases: (a) that prior to, and (b) that subsequent to the arrival of this new equipment. 21. In Phase (a), the team members will be primarily concerned with assisting the RD to establish the institutional framework necessary to ensure that the existing equipment will be effectively and efficiently utilized and maintained. The establishment of this necessary framework will include the following: ANMEX A-2 Page 4 (a) For highway maintenance operations: - technical planning and programming of highway maintenance works; - the efficient operation of permanent headquarters, regional maintenance centers, road camps and mobile soils/materials laboratories; and - the efficient operation of earthmoving and associated equipment. (b) For the maintenance of highway equipment: - the efficient operation of the new and rehabilitated work- shops an, servicing facilities (see Attachment C for loca- tion). 1I (c) For the administration of the Program: - implementation of recommended organizational improvements; - installation of a proper functional cost accounting system, including equipment charging, inventory control techniques and other management information and works control measures (see Attachment B); and - assistance in recruiting personnel both for work and training. 22. In Phase (b), the Program activities will be extended to apply to the increased stock of maintenance equipment and workshop facilities and to the absorption of trainees into the maintenance organization. Emphasis should be placed on: - the day-to-day planning of work to achieve optimum use of labor and equipment; - the correct operation of equipment; - on-job training of new Omani operators and mechanics; - the recording of performance, costs and output to ensure ade- quate physical and financial control of work- - the operation of inventory control procedures to ensure economic stock levels and effective reordering of spare parts and materials; and - the level of practical training of personnel that can be accom- plished without affecting the efficiency or effectiveness of the maintenance operations. 1/ Map 3. ANNEX A-2 Page 5 D. Work Plan, Training 23. This subject is detailed in Attachment A. E. C_nduct of and Responsibilities for The Services 24. The responsibility for the conduct of the Services will rest with the MM/T Consultants. The latter will continuously monitor the performance of the road maintenance staff and will be responsible for initiating proposals to the Government on changes in staffing, location or working of their own team members which may, in their opinion, be desirable to achieve the objectives set out in Articles 3 and 4. 25. The MM/T Consultants, as a team and individually, will conduct The Services with due diligence and professional expertise and will cooperate fully with all relevant Government agencies and its consultants. F. Coordination between the MJM/T Consultants and The Consultants serving in a technical assistance capacity to the Government 26. The Work Plan, outlined above, will necessitate coordination of The Services and the work of the existing technical assistance consultants in the period during which the two services overlap. Since the general technical assistance now being provided to the RD under IBRD Loan 985-OM will be continued under the present program, coordination will be necessary. In particular, the development of a functional cost accounting system for the maintenance program shall be coordinated with the work that the general consultants to the RD will be performing in connection with their work on a general cost accounting system for RD. While each of the consultants will be responsible for their own work, the general technical assistance consultant will be responsible for the coordi- nation. Should problems arise which cannot mutually be resolved by the two consultants, the general technical assistance consultant will bring them to the attention of the appropriate person in the RD for resolution. VI. LOCAL FACILITIES AND SERVICES TO BE PROVIDED BY THE GOVERNMENT A. Cooperation of Government Agencies 27. In connection with the MM/T Consultants' work which requires the cooperation of other Government agencies, the Government will provide liaison and will ensure that the MM/T Consultants have access to appropriate information required during those services. B. Facilities and Supporting Staff 28. The Government will provide the MM/T Consultants with the following facilities, either directly or by reimbursing the Consultants for the costs of: ANNEX A-2 Page 6 3 electric typewriters 5 desk calculators 1 adding machine 1 duplicator/copy machine 5 four-wheel drive vehicles 3 saloon cars 1 fully bilingual (English,Arabic) highly qualified secretary office supplies other equipment and/or materials mutually agreed upon as being necessary for the efficient and effective conduct of the work. 29. If the procurement of the above items, and any other items, are arranged by the MM/T Consultants with the agreement of the Government, the items will, nevertheless, remain the property of the Government and will be used by the MM/T Consultants only in connection with their work under these Terms of Reference. 30. The Government shall also provide the MM/T Consultants with: (i) appropriate office space; (ii) appropriate office furniture; (iii) office utilities; (iv) post, telephone and telegraph;services for official business; (v) local support staff, including local travel and subsistence for local staff; (vi) local travel costs, including air travel, for official purposes to the Consultant's staff; and (vii) printing and reproduction of reports except for the final Final Report. C. Undertakings of the Government 31. The Government undertakes to exempt the NI'I/T Consultants from or bear the costs of any taxes, duties, fees, levies or other impositions imposed under its laws and regulations, nationally or locally, on the MM/T Consultants' perso personnel who are not citizens of Oman for payments that such personnel may have to make in connection with the execution of the services including: (i) equipment, materials and supplies brought into Oman for the purpose of the execution of the services and which, at the termination of the services shall be taken out of the country by the MM/T Consultants; and (ii) property brought into Oman, shipment of which is initiated within two months after the date of arrival of the members of the MM/T Consultants' personnel in Oman which will be exported upon the departure of such personnel. ANNEX A-2 Page 7 The Government will also undertake to: (i) to facilitate prompt clearance through customs of equipment, materials and supplies required for the services and of the personal effects of the MM/T Consultants' personnel; (ii) to provide the MM/T Consultants' personnel and their depen- dents who are expatriates with multi-entry and exit visas and the required residence permits and travel documents required for their stay in Oman; and (iii) to provide (rent) adequate, air-conditioned housing for the MM/T Consultants' staff and their dependents. 32. The Government shall, to the best of its ability, assign qualified counterparts to work with key personnel of the MM/T Consultants for purposes of liaison, training and review of the Consultants' findings and recommendations. VII. REPORTS 33. The MM/T Consultants shall submit the following reports (in English unless otherwise noted): (A) A Progress Report at three monthly intervals, briefly describ- ing the work carried out during the previous three months and the proposec work program for the following few months. The report shall include a summary anl general statement on general progress and any problems or delays envisaged and the proposed renedial action. Specifically, the reports shall cover, as appro- priate, the following: (a) for the three-month period prior to the date of the report: (i) details of the team member's participation in the work; (ii) the extent of local staff training carried out; (iii) details of delays in implementation of the Program, with the reasons therefor identified (shortage of personnel, shortage of equipment or spares, ineffi- cient planning, etc.); (iv) the extent of implementation of job costing and inventory control and the response of the RD to these and other management control measures; (v) a detailed financial summary showing the allocation of expenditures for maintenance operations bv road and road section; (vi) the extent and quality of the work accomplished in the execution of the Program; ANNEX A-2 Page 8 (vii) the degree of cooperation received from the staff of the RD; (viii) the response of the RD to the new organization, equipment and method; and (ix) any factors which are militating against the fullest use of the Services; and (b) for the three-month period subsequent to the date of the report: (i) details and estimated costs of the RD's proposed work program; (ii) details of the proposed training program; and (iii) details of circumstances which may hinder the implementation of (i) and (ii). The first quarterly report by the MM/T Consultants will recommend such amend- ments to staffing of their team, with reasons therefor, as would be necessary, in their opinion, to achieve the objectives of the Services. Recommendations for amendments to the Program may also be contained in this first report as well as subsequent reports. (B) A draft report on a Five-Year Physical Maintenance Program for 1979/1983 within 12 months of the startIng date. (C) A Final Report on a Five-Year Physical Maintenance Program for 1979/1983 within two months of receiving comments on the draft report from Government and the IBRD incorporating all revisions deemed appropriate by the MM/T Consultants. (D) A draft report on a Five-Year Physical Maintenance Program for 1980/1984 within 24 months of the starting date. (E) A Final Report on a Five-Year Physical Maintenance Program for 1980/1984 within two months of receiving comments on the draft report from Government and the IBRD incorporating all revisions deemed appropriate by the MM/T Consultants. (F) A draft report on a Five-Year Physical Maintenance Program for 1981/1985 within 32 months of the starting date. (G) A Final Report on a Five-Year Physical Maintenance Program for 1981/1985 within two months of receiving comments on the draft reDort from Government and the IBRD incorporating all revisions deemed appropriate by the MM/T Consultants. 34. Ten copies of all reports will be submitted to the Government and five to the IERD. ANNEX A-2 Page 9 Attachment B FUNCTIONAL COST ACCOUNTING The development of a functional cost accounting is an important component of these Terms of Reference and will include, but not necessarily be limited to, the following: 1. The development of a system of functional cost accounts for the mainte- nance program (RD) which will provide for effective planning, budgeting, monitor- ing and control of maintenance expenditures. This system of accounts will be developed in coordination with the technical consultants and shall be susceptible to full and effective integration with the overall accounting system recommended by The Consultants (and approved by the Government), including other cost account- ing components. Minimally, the system will provide for: (i) the recording of the costs for manpower, materials and equipment associated with performance of specific categories of maintenance work within specific management areas on specific sections of roads, or on specific projects, as may be appropriate; (ii) the recording of the costs associated with the operation and mainte- nance of equipment repair shops and other facilities operated in conjunction with the maintenance of equipment, in such a manner as to provide the information need for effective planning, budgeting and financial control; (iii) the recording of all information necessary to keep track of the current status and usage of all inventories established in conjunction with the maintenance operation, including road building materials, equip- ment spare parts and supplies; and (iv) the recording of the costs associated with equipment operation and maintenance, as related to each piece of (major) equipment, including the costs of routine preventive maintenance, repairs of breakdowns (separating parts and labour), and operating costs, including those for fuel, lubricants and other expendable supplies. The equipment accounting system shall provide for ready determination of the total annual cost of ownership, operation and care of the equipment. 2. The development and implementation of a system of reports to be utilized in field offices and shops, to provide, appropriately summarize and record, on a timely basis, all of the information required for the effective implementation of the maintenance and equipment accounting systems. This system of reports will be coordinated with The Consultants in order to provide for all accounting needs. 3. Recommendations for programming, budgeting and accounting procedures to be adbpted by the department for the allocation of funds and control of expendi- tures in the maintenance regions, and for equipment depreciation, inventory manage- ment and analysis of road maintenance costs. May 1977 ANNEX B Page 1 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN Draft Terms of Reference General Technical Assistance Roads Department I. INTRODUCTION 1. (i) The Roads Department (RD) under International Bank for Reconstruc- tion and Development (IBRD) Loan 985-OM, is receiving general technical assist- ance in its overall operations and in the preparation of an overall highway organization and maintenance program. These services are now nearing completion. (ii) These terms of reference refer to continued general technical assistance for aspects of the RD responsibilities described below. The period for the ser- vices will be 36 months. (iii) Management of the highway maintenance program, as well as a related training program, will be provided independently through technical assistance under separate terms of reference. II. OBJECTIVES 2. The purpose of the services are: (i) to develop and continually update a detailed five-year program of highway capital investments based on economic priorities and a prospective program of highway investments for an addi- tional five years; (ii) review, as required, highway and bridge designs; (iii) review, as required, construction contracts, specifications and all related bidding documents; (iv) assist, as required, in the analyses of tenders for highway con- struction and improvement projects and for tenders of equipment, spare parts and supplies not related to the maintenance program; (v) as required, prepare terms of reference (TOR) for and monitor highway feasibility studies; (vi) review and make recommendations for appropriate revisions to the cost accounting system used by the DR, coordinating for compat- ability the functional accounting system to be developed for the highway maintenance program by the Maintenance Management/Train- ing Consultants; ANNEX B Page 2 (vii) assist the RD in establishing a data bank for highway planning, especially traffic data and related information; (viii) assess the needs and make recommendation for special studies which may be required for highway planning and/or other functions of the RD; (ix) update the highway user cost study as required; (x) study highway user charges in Oman in terms of economic efficiency and budget implications and make recommendations as to such charges; (xi) provide estimates of annual budget allocations (by major recurrent and capital expenditure items) as required; and (xii) provide day-to-day technical assistance to the RD as required. III. SCOPE OF CONSULTING SERVICES A. General 3. In order to attain the objectives detailed above,the RD proposes to invite consultants to provide approximately 100 man-months of technical assist- ance over a three-year period. The foreign exchange costs of these services are expected to be financed as part of an IBRD loan. The Consultant shall perform the functions and services herein described. In performance of the services the Consultant shall cooperate fully with the Government, which is to assign counter- part personnel to work in close cooperation with the Consultant and provide the data and services outlined in Part V. The Consultant, however, shall be solely responsible for the findings and recommendations contained in their reports. B. Highway Planning 4. The Consultant shall review present planning for highway capital investments and develop the methodology for preparing a highway master plan which will be amenable to continuous updating. The methodology shall be consistent with the requirements for the relatively simple transport network of Oman. In this con- text, any traffic assignment model, or other model, recommended for use shall already be fully operational and documented. 5. After acceptance of the proposed methodology for development of the master plan (see Section IV, "Reports") the Consultant shall prepare a highway master plan which develops a detailed five-year highway capital investment program and a prospective program of highway investment for an additional five years using the agreed methodology. The program shall be amenable to continuous updating. In conjunction with the development of the master plan, the Consultant will assist the RD in establishing a data bank related to highway planning, including standard procedures for the collection and analysis of traffic data (volume and classification counts, speed studies, travel time and delay studies, intersec- tion counts, capacity studies and origin and destination surveys). 6. In developing the highway master plan the Consultant shall review the previously completed highway user cost study and update it as required. ANNEX B Page 3 7. As part of their input to the highway planning process in Oman, the Consultant shall study highway user charges in Oman in terms of economic effi- ciency and budget implication and make recommendations as to the distribution and level of such charges. In making the analysis of user charges the Consultant will consider the relative costs that should be allocated to different vehicle classes in relation to certain base costs to be shared by all vehicles (joint costs) and the additional costs of construction and maintenance engendered by the particular vehicle class (incremental costs). Overall costs to be assessed to users will be predicated on Government neutrality between different transport modes and between investments in transport and other investments (i.e. highway users will not be subsidized or penalized). 8. On the basis of the highway master plan and in the context of the rec- ommended highway user charges, the Consultant will provide estimates of annual budget allocations by recurrent and capital expenditure items. (Note, that in the short run user charges may fall behind meeting capital costs in a time of expanding the highway network. If properly formulated, and periodically updated, user charges should "repay" capital investment in the long run. There is just as much equity, however, in spreading costs over the useful life of a highway as there is in any other public or private capital investment.) 9. The Consultant will also make such recommendations for special studies needed for highway planning as they consider necessary. C. Other Technical Assistance to the RD 10. The Consultant shall also review, as required, highway and bridge de- signs, construction contracts, specifications and all related bidding documents, assist in the analysis of tenders for highway construction and improvement projects and for equipment and spare parts not related to the highway maintenance program. 11. The Consultant will also assess the need for and recommend any special studies which may be required for the effective functioning of the RD, prepare TOR for and monitor highway feasibility studies as required and review and make recommendations for appropriate revisions to the cost accounting system used by the RD. 12. In conjunction with work on the cost accounting system of the RD, the Consultant will coordinate his work with that of the maintenance management/ training consultant in developing a functional accounting system for the highway maintenance program. While each of the consultants will be separately respon- sible for their own work, the general technical assistant Consultant will be responsible for the coordination. Should problems arise which cannot mutually be resolved by the two consultants, the general technical assistance Consultant will bring them to the attention of the appropriate person in the RD for resolution. 13. The Consultant will also provide such day-to-day technical assistance in the field of highway administration, engineering and planning as the RD may require to the extent that budgetary limitations allow. ANNEX B Page 4 2 IV. REPORTS 14. The Consultant shall submit the following reports (in English unless otherwise noted): (a) A Progress Report at two monthly intervals, breifly describing the work carried out during the previous two months and the pro- posed work program for the following few months. The report shall include a summary and general statement on progress in the develop- ment of the highway master plan, any problems or delays envisaged and the proposed remedial action. The report shall include details on the Consultant's staff on the project including a current and projected staff bar chart. Six copies to the Government, four copies to the IBRD. (b) An Inception Report within three months of the project starting date. This report shall detail the methodology proposed for the development of the highway master plan. Ten copies to the Govern- ment, five copies to the IBRD. (c) A draft report within five months of the starting date with an up- date of highway user costs in Oman. Six copies to Government, four copies to IBRD. (d) A Final Report on updated User Costs within two months of receiv- ing comments on the draft report from the Government and IBRD incorporating all revisions deemed appropriate by the Consultant. Ten copies to Government. ten coDies to IBRD. (e) A draft report within 12 months of the starting date with an ap- propriate cost accounting system to be used by RD. Six copies to Government and four copies to IBRD. (f) A Final Report on an appropriate cost accounting system to be used by RD within three months of receiving comments on the draft from Government and the IBRP incorporating all revisions deemed appro- priate by the Consultant. Ten copies to Government, ten copies to IBRD. (g) A draft report on the highway master plan within 18 months of the starting date. Ten copies to Government, six copies to IBRD. (h) A Final Report on the highway master plan within three months of receiving comments on the draft report from Government and the IBRD incorporating all revisions deemed appropriate by the Consult- ant. Ten copies to Government, ten copies to IBRD. (i) A draft report on Highway User Charges within 24 months of the starting date. Six copies to Government, four copies to IBRD. (j) A Final Report on Highway User Charges within three months of re- ceiving comments on the draft report from Government and the IBRD incorporating all revisions deemed appropriate by the Consultant. Ten copies to the Government, ten copies to the IBRD. ANNEX B Page 5 (k) An updated highway user cost report within 32 months of the start- ing date. (No draft should be required.) Ten copies to Govern- ment, ten copies to IBRD. (1) A Final Report within 36 months of the starting date detailing (i) work performed; (ii) progress made in implementing recommenda- tions; (iii) benefits resulting from the implementation of recom- mendations; (iv) any areas in which progress has been unsatisfac- tory; and (v) recommendations for any further technical assistance. Ten copies to Government, ten copies to IBRD. (m) In addition, the Consultant shall produce other reports which may be required during the course of the technical assistance as agreed upon by the Government and the Consultant. V. LOCAL SERVICES AND FACILITIES TO BE PROVIDED BY THE GOVERNMENT A. Cooperation of Government Agencies 15. In connection with the Consultant's work which requires the cooperation of other Government agencies, the Government will provide liaison and will ensure that the Consultant has access to appropriate information required during those services. B. Facilities and Supporting Staff 16. The Government will provide the Consultant with the following facili- ties, either directly or by reimbursing the Consultants for the costs of: 2 electric typewriters 2 desk calculators 1 adding machine 1 duplicator/copy machine 2 four wheel drive vehicles 2 saloon cars 1 fully bilingual (English, Arabic) highly qualified secretary Office supplies Other equipment and/or materials mutually agreed upon as being neces- sary for the efficient and effective conduct of the work. 17. If the procurement of the above items, and any other items,are arranged by the Consultant with the agreement of the Government, the items will, neverthe- less, remain the property of the Government and will be used by the Consultant only in connection with their work under these TOR. 18. The Government shall also provide the Consultant with: (i) appropriate office space; (ii) appropriate office furniture; (iii) office utilities; (iv) post, telephone and telegraph services for official business; ANNEX B Page 6 (v) local support staff, including local travel and subsistence for local staff; (vi) local travel costs, including air travel, for official purposes to the Consultant's staff; and (vii) printing and reproduction of reports except for the final Final Report. C. Undertakings of the Government 19. The Government undertakes to exempt the Consultant from or bear the costs of any taxes, duties, fees, levies or other impositions imposed under its laws and regulations, nationally or locally, on the Consultant's personnel who are not citizens of Oman for payments that such personnel may have to make in connection with the execution of the services including: (i) equipment, materials and supplies brought into Oman for the pur- pose of the execution of the services and which, at the termina- tion of the services shall be taken out of the country by the Consultant; and (ii) property brought into Oman, shipment of which is initiated within two months after the date of arrival of the members of the Consult- ant's personnel in Oman which will be exported upon the departure of such personnel. 20. The Government will also undertake to: (i) to facilitate prompt clearance through customs of equipment, mate- rials and supplies required for the services and of the personal effects of the Consultant's personnel; (ii) to provide (rent) the Consultant's personnel and their dependents who are expatriates with multi-entry and exit visa and the required residence permits and travel documents required for their stay in Oman; and (iii) to provide adequate, air-conditioned housing for the Consultants' staff and their dependents. 21. The Government shall, to the best of its ability, assign qualified counterparts to work with key personnel of the Consultants for purposes of liai- son, training and review of the Consultant's findings and recommendations. May 1977 ANNEX C OMAN APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT Estimated Disbursemrent Schedule (US$ thousand) IBRD Fiscal Year Cumulative Disbursement and Quarter at End of Quarter 1977/78 March 31, 1978 1,700 June 30, 1978 3,800 1978/79 Sept 30, 1978 5,300 Dec 31, 1978 6,300 March 31, 1979 7,400 June 30, 1979 8,400 1979/80 Sept 30, 1979 8,900 Dec 31, 1979 9,700 March 31, 1980 11,600 June 31, 1980 13,400 1980/81 Sept 30, 1980 14,000 Dec 31, 1980 14,500 March 31, 1981 15,000 Source: Mission Estimates, February 1977 MaY 1977 ANNEX D-1 Page 1 Attachment A Terms of Reference Training I. INTRODUCTION 1. This Attachment A forms a component part of the Terms of Reference for The Services to which it is attached. 2. In 1974 an IBRD-financed technical assistance project (Loan 985-OM) provided a basis for the development of an Omani Highway Five-Year Maintenance Program. 3. A review of the present situation indicates that maintenance of the existing highway network, plus the introduction of a comprehensive training program for maintenance personnel entailing the construction of a Training Center, the provision of training equipment and expatriate instructors, is now of critical importance. II. OBJECTIVES 4. The objectives of the training program are: (a) to determine the training requirements related to the maintenance program for the Omani road network as agreed to by the Ministry of Communications and Public Services (MC) and the Roads Department (RD); (b) to recommend for MC/RD and IBRD's approval a detailed training plan to meet current and future needs for highway and equip- ment maintenance personnel; (c) to formulate and implement an agreed training program, taking into consideration that all maintenance work related to periodic maintenance of asphalt roads (i.e. resealing, pavement overlays etc.) will be carried out by competitive contract for a number of years. III. SCOPE OF SERVICES A. General 5. In the conduct of the training, the MM/T Consultant will be directly responsible to the Director of the RD and shall cooperate fully with the Government and any other public authority involved. The 1/ These TOR will be part of the Maintenance Management/Training Technical Assistance (see Annex A). ANNEX D-1 Page 2 Government will assign the necessary counterpart personnel and provide the data, studies, services and facilities outlined in Article V. The MM/T Consultant shall coordinate its work with that of appropriate IBRD missions and other consultants, if any, but shall be solely responsible for the findings, conclusions and recommendations contained in their report. B. Assessment of Training Needs 6. To assess the current and future manpower training needs, the team, among other things, shall: (a) identify the skills and knowledge required for efficient maintenance operations by personnel at all levels; (b) evaluate the capability and potential of the manpower available in order to better assess training needs; (c) determine how existing personnel can be made available for training without interfering with ongoing operations; (d) identify possible source of recruitment, including the Vocational Training Center of Darsait, and discuss likely constraints with the RD; (e) estimate the physical training facilities, didactic materials and training equipment required to carry out an agreed training program; (f) identify and evaluate other existing training facilities in Oman, including the Vocational Training Center of Darsait, and determine their suitability for training of the maintenance personnel; (g) determine the number and categories of expatriate personnel who will be required for the next five years or until Omani instructors can be trained to take over; (h) determine the number and categories of Omani instructors required for the next five years and establish a priority list of those who should be trained first; and (i) assist with the establishment of a permanent Training Unit within the RD including its structure, functions and related budget. ANNEX D-1 Page 3 C. Recommendations for a Comprehensive Training Plan for Maintenance Personnel 7. Upon completion of the assessment under Article III-B above, the MM/T Consultant shall: (a) submit an Inception Report presenting the results of the assessment together with detailed recommendations for a comprehensive plan which would meet the training needs, including: (i) program objectives; (ii) fields of training and number of personnel (by category/ function) to be trained; (iii) proposed methodology, including the use of a training production unit(TPU) wherever possible; (iv) types and number of courses/programs which can be carried out at the Vocational Training Center in Darsait; (v) training time-schedule; (vi) costing of the training plan as follows; - civil works: dormitory, classrooms, workshops, stores etc., broken down between local currency and foreign exchange components; - training equipment and materials: (major road maintenance equipment; machines and hand tools for workshops; didactic materials; and audio-visual equipment and training aids); - training abroad; and, - recurrent expenditures. (b) develop a monitoring and evaluation system within the program to both monitor the results of training while it is being carried out and, later, to evaluate the effectiveness of completed programs. D. Formulation and Implementation of Agreed Training Programs 8. After having reached an agreement with the MC/RD on the assessment of training needs and the recommendations for a plan to meet these needs under Article III-C (above), the MM/T Consultant shall: (a) develop detailed training programs, procedures and outline of courses; ANNEX DL-1 (b) implement these programs, procedures and courses; (c) assist in the establishment of a permanent Training Unit within the DR which would take over and continue all training activities after the departure of the MM/T Consultant; and, (d) monitor graduates of the training programs. IV. REPORTS 9. The MM/T Consultant shall commence work on the assignment within 30 calendar days after the date of notice to proceed, and shall submit the follow- ing reports in the English language within the time limits specified: (a) an Inception Report within three months after starting date detailing training needs and containing recommendations for a comprehensive training plan to meet these needs. The Inception Report shall contain a concise first chapter summarizing the body of the report; and, (b) quarterly Progress Reports following the Inception Report. The Progress Reports shall briefly describe the work program for the the previous three months and the proposed work program for the following few months. The reports shall include a summary and details (bar-chart) on the progress of the training program, any problems of delays envisioned and the proposed remedial action. The reports shall also include details of the consultant's staff on the training component of the project, including a current and projected staff bar-chart. V. DATA, LOCAL SERVICES AND FACILITIES TO BE PROVIDED BY GOVERNMENT A. Data 10. The Government will provide the MM/T Consultant with all information that may be reasonably required for the services including reports prepared by Government Agencies and their consultants. B. Cooperation of Government Agencies 11. In connection with the MM/T Consultant's work that requires the cooperation of other Government Agencies, the Government will provide liaison with such Agencies and ensure that the MM/T Consultant has access to all information required to satis- factorily comply with these Terms of Reference. C. Counterpart Staff 12. The Government will assign the appropriate number of counterparts to work with the MM/T Consultant. The counterparts will be assigned on a full-time basis for the purpose of the liaison and training. The MM/T Consultant will undertake to involve the counterparts in all phases of the training activities, including data collection, assessment of training needs, design of suitable programs and training ANNEX D-1 Page 5 materials and finally in the implementation and evaluation of the training courses. The counterparts should, on completion of the contract, be assigned as permanent training officers or instructors within the Training Unit of the RD. D. Facilities and Supporting Staff 13. The facilities and supporting staff to be provided by the Government for the training component of the Maintenance Management/Training technical assistance are covered and included in the Terms of Reference dealing with the Maintenance Management component. E. Undertakings of the Government 14. The undertakings of the Government applicable to the training component of the Maintenance Management/Training technical assistance are detailed in, and are identical to, those in the Terms of Reference for the Maintenance Management component. May 1977 ANNEX D-2 Page 1 APPRAISAIS OF A HIGHWAY MAINTENANCE PROJECT OMAN Establishment of a Training Structure Roads Department 1. The capacity of the Training Unit (TU) of Roads Department (RD) should be established to support the implementation of the Five-Year Maintenance Pro- gram. The training structure will be established by: (a) constructing a Train- ing Center (TC) in Azaiba; and (b) setting up a Training Production lJnit (TPU). 2. The bulk of the training could then be carried out in the field urder the supervision of training staff, using the TPU to provide on-the-job training. Under the time constraints imposed by the five-year program, the formation of a semi- autonomous TPU would be the most efficient method of coping with the large scale training needs. First, the TPU offers an opportunity for more cate- gories and levels of personnel to be trained on site, under normal working conditions, and in a shorter period of time than would be possible otherwise. Second, the TPU permits a smaller capital investment in fixed facilities. Third, the per capita cost of putting a trainee through the TC program would decrease because of the training through production element of the program. 3. At least, two expatriate instructors must be hired to run the TPU and a number of key personnel would have to be trained as supplementary instructors (one Senior Inspector-Roads plus three Foremen-Roads and three Grade I Mechanics) or recruited from the open market. TPU activities would add to the supervisory activity of the TU staff. It would re- quire setting up a supply system within the TC to ensure that the TPU is properly stocked with spare parts, materials, lubricants, etc. It would also mean coordination between TU headquarters and the RD Work Centers with regard to training and field maintenance activities. 4. Responsibilities for training will be divided as follows: A. TU and TC (i) planning, implementation, supervision, quality control of all training activities, including policy and budgeting; (ii) coordination with the TPU, the three RD Divisions and other national training institutions; (iii) pedagogical support; (iv) supply system (spare parts and materials for TPU); (v) evaluation of training; and ANNEX D-2 Page 2 (vi) implementation of the following training programs: (a) instructors for TC and TPU; (b) all roads supervisors other than overseers grades I, II and III; (c) surveyor assistants; (d) storekeepers; (e) retraining of plant operators at more advanced levels of achievement, and initial training of new operators and drivers (tippers/trucks); (f) mechanics grades I and II (second part of program for grade II to be carried out in the field); (g) mechanical inspectors; and (h) electricians. B. TPU Field Training (i) The scope of TPU activities covers training and upgrading of various categories and levels of personnel under normal working conditions and while carrying out regular highway operations. The categories involved could be: (a) overseers; (b) equipment operators and drivers; (c) mechanics; and to a lesser extent (d) storekeepers and survey assistants. (ii) As trainees complete their programs they would be assigned to operating units. Limited classroom facilities would have to be provided for the TPU such as tents or temporary camp buildings, as well as the required training materials and stan- dard tools. TPU Training Cycle for Overseers 5. Generally a TPU training cycle for overseers in the Civil Engineering Section would be 12 weeks. The recommended number of overseers per cycle is 12, with each having completed 4 weeks theoretical training at the TC. Their program in the TPU would continue as follows: divided into 4 groups of 3, each group receives 3 weeks instruction on the main functions of: (i) drain- age and culverts; (ii) earthworks, equipment operators and drivers; (iii) struc- tures; and (iv) administration. Thus, each trainee is taught not only his ANNEX D-2 Page 3 specialty but also the 3 other supervisory functions with which he will be in contact on the work site. At the end of each 12-week period, the 12 overseers will be ready for assignment to operating units. TPU Training Cycle for Equipment Operators and Drivers 6. The TPU should carry in its inventory 6 pieces of heavy equipment (2 graders, 1 dozer, 1 loader, 1 roller and 1 wheeled tractor) plus 6 tippers and 3 service trucks. Each training cycle is geared to handle 24 operators and 12 drivers. The operators are divided into 6 groups: 2 graders = 8 operators 1 dozer = 4 operators 1 loader - 4 operators 1 roller = 4 operators 1 tractor = 4 operators Before being assigned to the TPU, trainees should receive instruction in pre- ventive maintenance on the 6 types of heavy maintenance equipment at the TC. A 12-week course consists of 8 weeks basic training on the specific piece of equipment for which the trainee has been selected, plus 4 weeks learrn- ing to operate a second-priority piece of equipment. At the end of the cycle, each trainee should be familiar with 2 types of equipment. The drivers folloxw a 12-week course on tippers and service trucks and their operation under normal work site conditions. Upon completion of the 12-week course, the 24 operators and 12 drivers will be ready for assignment to operating units. TPU Training Cycle for Mechanics 7. Each cycle car. accommodate 12 junior mechanics divided into 3 groups: equipment repairs - 6 vehicle repairs = 4 quality control = 2 The mechanics spend 16weeks in an equipment repair workshop of the TC, then 4 weeks on vehicle repairs and 4 weeks on quality control. Upon completion of the 24-week course, the 12 mechanics will be ready for assignment to operating units. After 1 or 2 years field service, the better performing graduates may be selected for further upgrading to higher levels at the TC. Output of a TPU 8. Depending on trainee standard, weather conditions, topography and soil conditions, the average training cycle in the Civil Engineering Section should be 3 to 4 months, and from 6 to 8 months in the Mechanical Section. Accordingly, 1 TPU should be expected to produce the following number of trained personnel per year: ANNEX D-2 Page 4 Civil Engineering Section 1) overseers 48 2) operators 96 3) drivers = 48 192 Mechancial Section 1) mechanics 24 Total 216 With an annual per-unit output of 216, the total output9?f one TPU in 3 years would be 648. Typical Training Production Unit - TPU CHIEF OF UNIT | CIVIL ENGINEER- | MECHANICAL | _ING SECTION ll SECTION l RA ATHOR STRUCTURES PAT VEHICLES QUALITY Staffing One - Senior Road Construction/Maintenance Superintendent plus One - Senior Road Inspector and three Road Foreman-Instructors and Three - Mechanics Grade I-Instructors May 1977 ANNEX E Page 1 APPRAISAL OF A HIGHWAY MAINTENANCE PROJECT OMAN METHODOLOGY USED FOR ECONOMIC EVALUATION OF ROUTINE MAINTENANCE PROGRAM 1. The economic justification for some level of routine maintenance is apparent. Costs of preventing, through maintenance, the failure of a roadway are less than the periodic rebuilding (or the original building) of the road- way. Thus, if the original construction, or the reconstruction, of the road- way is economically justified it is economically justified to maintain the road. (Indeed, a proper economic analysis for a road investment will include maintenance as one element of the cost stream.) Even if a particular road improvement was not economically justified in the first place it usually is economically justified to maintain the road since the original investment has to be considered as sunk cost, and the marginal costs of maintenance are relatively low. Indeed, since a substantial part of road maintenance costs are directly related to traffic on the roadway, being low when traffic is low, it is only at minimal levels of traffic that maintenance is not justified (and the road should be effectively abandoned). 2. The optimal level of maintenance should depend on the marginal costs of increasing maintenance effort (beyond that which would just prevent the roadway from complete failure or impassability) vis-a-vis the decrease in user costs. In the theoretical sense this will vary between various road sections, depending on the various incremental costs and benefits and each section could be subject to an economic analysis (of the maintenance effort). As a practical matter, however, the physical and adminstrative requirements of a maintenance program (as well as the fact that roads do not necessarily all deteriorate according to a theoretical schedule, and that such "fine tuning" is really not justified by the actual empirical data, especially data on user costs) means that certain discrete levels of maintenance are planned and then applied with flexibility in the field. Nevertheless, in the development of a maintenance program the economic analysis serves to estabish the reasonableness and to verify the size and scope of the program. 3. For the purposes of obtaining a B:C ratio for the proposed routine maintenance program the economic costs of the program were compared with eco- nomic benefits resulting from savings in operating cost to road users. These were the only benefits taken into account. For purposes of this evaluation an opportunity cost of capital of 15% and 20% were used, which is certainly considerably higher than the actual value in Oman at this time. Since the present paved road system is relatively new (average age about two years and only 10 km of road as old as seven years) the costs of potential future repairs due to deterioration of pavement assuming lack of maintenance (or ANNEX E Page 2 alternatively, the much higher operating costs for vehicles), beyond the five year time span of the analysis was not considered. To the extent that there would be such additional costs (i.e., costs engendered when the roadway deteriorates to the point that it needs extraordinary maintenance or recon- struction) the analysis understates the benefits from the proposed maintenance program. Also, any additional costs which might accrue on unpaved roads when lack of proper maintenance could cause damage to cargo during transport or result in additional costs from spoilage due to delay in transport was not considered since they were not critical to the analysis. 4. Road user saving represented the difference in vehicle operating costs betwen the present level of maintenance and the proposed level of main- tenance. Vehicle operating costs for Oman were established by the technical assistance consultant to the RD and were presented in a special report (Tables 8-11). 5. The economic cost estimates for the proposed maintenance program were developed from the specified requirements for the program (Table 21). Costs of the existing maintenance were projected on the basis of the present maintenance effort. Traffic over the road network was forecast on the basis of projected vehicle fleet growth to 1982 which in turn was based on general economic trends and anticipated development as reflected in the Government's Five-Year Plan (Table 7 and Map 2). 6. Projected traffic was divided into heavy and light vehicles and into average daily traffic (ADT) categories by paved and unpaved surface types for each of the years analyzed. For each of the road surface types and ADT categories (a total of six overall) a weighted average of operating cost per vehicle-kilometer was established for the recommended maintenance program and for the maintenance effort currently being applied by the RD. The present maintenance effort is inadequate and if maintenance in the future were limited to this level there would be a deterioration of the road network which would be exacerbated year by year, especially on those links with growing traffic. This deterioration would gradually increase future user costs, which have been estimated by adjusting present user costs by certain factors reflecting road deterioration (Tables 12-20). 7. As deterioration progresses the annual increase in user costs could be expected to be exponential in nature, until the road, as a road, no longer existed. However, since only a five-year period was being con- sidered deterioration on the relatively "new" paved roads would not reach this point. Deterioration on some links of the unpaved network with relatively high traffic could be significant. However, since there is some maintenance being performed on these links they are not expected to deteriorate to the point of being unusable. 8. The factors used in the analysis were calculated from (economic) vehicle operating costs on five surface conditions for paved and unpaved surfaces by vehicle category. Taxis, pick-ups, Land Rovers and trucks were considered to be in commercial use and their operating costs included drivers ANNEX E Page 3 salaries. The cost for passenger cars, other than taxis and Land Rovers, excluded drivers salaries or any value for leisure time. A single, composite, vehicle operating cost was calculated from the weighted average of the traffic composition observed in traffic surveys. 9. The B:C ratio for the proposed maintenance program was obtained by comparing economic costs to economic benefits which result from savings in operating cost to road users at an opportunity cost of capital of 15% and 20% (para. 3). Since benefits would be lower if projected traffic were less, and the ER would be lower if project costs of the maintenance program were higher an evaluation was made assuming both a 20% decrease in benefits and a 20% increase in cost at an opportunity cost of capital of 20%. Results clearly indicate the economic justification for the proposed routine highway main- tenance program (Table 28). May 1977 APPRAISAL OF A HIGHWAY PROJECT OMAN ACTUAL WORKING STRUCTURE, ROADS DEPARTMENT R Minister Oi Communi- catCotrs |Technical | Director Director of Roads I I I | Maintenance Mechanical Administra g | ~~~Division || Division | ive D ivis ion Regional ecord Terriorie Shos _ SectionsI and Work Centers 7~~~~~~~~~~~~~~4 Stores, l eton VVorld Ban k-17088 MaY 1 977 -l-A a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- o~~ X ~ _0o0 ' _ ; 0 0 L_ _ _ l _ 0;N: ,'' S,,,, IBRD 1277' 5P' 8 4' 5'6$otrrcoi.n/Ho-m \ 58' 68' 0,7/ 8Al 1970 Pn.> e s,a o n 5 u / f 6 Kt 8 I R A N 5 z4 2 'K -~ , ---2PAKISTAN / 9 4 Al hijoiroh -5~~~~~~~~4- -24 ~~~~~~~~~~\0 stn C / 6 Oma SKWnbuo $7 ~~~~~~~~~~~Abah. b~J ' \~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~/ov ,r.jh 8Anrr -24-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 ~~~ 4+~~~~~ ALkw W0 h4 r a a -2 \ 5f &4 i^,o Fnh +&Awo / 'Aeor, 22' !~~~~~~~ ~~~ - VSlRb/ K-- 8 - \\03+ Airuirips ------- - ' s1- ' -' ' 'T, 01 fields I / , K / -., , . 0|, ,,., - ,- ,-- ,,_,_Oil pipelines 86~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Od4es, towns, Midnges F , -t - - - Elevatioas, 50meters cud obo0e \ * B _ ,'/ / O''. / 93X i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~lternotionol boutndaries PEOPLE'S K -- , 1 , V F 1 6- 6 DEMOCRATIC \8tvri , .8, .;. - S- Xe.>N.' f-.6.' ' l i - nf_ ~ o REPUBLIC , rt ,A OF YEMEN Y' su u-c, .s A roa b qos7 < n e r tkn aee 06 l lv4er} tr6 o 6il; mr5 4o e'56 ,Ehb£,8# < 'v ; i 5+h' *6 worM$ nksetils 55/AzoL 6p' .5 } ;: h X vsj,xP>! 5iiW,$-~~~~~~~~~~~~~~~~~~~~SULTNAT UN TED ARAB L is 2A '- L to / \ I g . . .: ? . t 0 , 0 ta/p-- ;.CuS ;0000;; ;v024aSS,. C N' < / X f '''< ' S0d'dl' i' f ; "t'', fffff fff 'V7 : ; t i''EV";f0'''''':''-:f,? V00:/ / : ::000Xg;u S0 / 3* ot / f 0 - - 0 C i $8A 0 t CL a t Z